BNY Mellon Sued by California Funds Over Foreign Exchange Costs
Oct. 27 (Bloomberg) -- Bank of New York Mellon Corp., the world’s largest custody bank, was sued by pension funds in California over allegations that it overcharged for foreign- exchange transactions.
The state False Claims Act lawsuit, filed in 2009, was unsealed yesterday in state court in Alameda County, California, the law firm Cotchett Pitre & McCarthy LLP said in an e-mailed statement. The firm represents employee retirement funds in Los Angeles.
The funds in Los Angeles and other California counties claim that BNY Mellon said it would use “best practices” when executing foreign exchange transactions to give its clients the highest price when in fact it used the least advantageous prices and secretly profited from the difference.
Massachusetts’s Secretary of the Commonwealth William Galvin yesterday filed an administrative complaint against the bank over similar allegations following lawsuits brought by the attorneys general of New York, Virginia and Florida and the U.S.
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