Employee Benefit Plans File Class Action Lawsuit Complaint Against Bank of New York Mellon Over Alleged Foreign Exchange Forex FX Standing Instructions.
A class action lawsuit has been filed against The Bank of New York Mellon Corporation, The Bank of New York Mellon, The Bank of New York Company, Inc. The Bank Of New York and The Bank of New York Mellon Trust Company, National Association (collectively “The Bank of New York” or “The Bank of New York Mellon” or “Defendants”) in the United States District Court for the Northern District of California (captioned International Union of Operating Engineers, Stationary Engineers Local 39 Pension Trust Fund v. The Bank of New York Mellon Corporation et al, Civil Class Action Case No. 11-3620) alleging, among other things, that The Bank of New York Mellon assigned fictitious foreign currency FX rates to certain purchases and sales of foreign securities that were done pursuant to “standing instructions” using FX rates that allegedly incorporated hidden and excessive mark-ups or mark-downs relative to the actual market FX rate, according to the The Bank of New York Mellon foreign exchange forex FX standing instruction class action lawsuit complaint.
The Bank of New York Mellon foreign exchange forex FX standing instruction class action lawsuit complaint is reportedly brought on behalf of the following Federal Rule of Civil Procedure 23 putative class of persons:
All California-based employee benefit plans covered by ERISA for which Defendants or any of their predecessors successors or affiliates provided custodial FX services, including executing FX transactions pursuant to “standing instructions” from January 12, 1999 to the present (the “California Class”);
All employee benefit plans covered by ERISA, wherever situated, whose FX transactions, including those executed pursuant to “standing instructions” were executed in New York by the Defendants’ New York FX desk from January 12, 1999 to the present. (the “New York Class”).
The Bank of New York Mellon foreign exchange forex FX standing instruction class action lawsuit complaint reportedly asserts claims for alleged violations of the Unfair Business Practices Act Business & Professions Code Section 17200, Business & Professions Code Section 17500, breach of contract, breach of the implied covenant of good faith and fair dealing and violation of N.Y. General Business Law section 349.
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