BNY Mellon Dodges Bulk Of MBS Trustee Action

Law360, New York (April 3, 2012, 5:15 PM EDT) -- A New York federal judge on Tuesday threw out most of a putative class action alleging The Bank of New York Mellon Corp. failed to properly oversee hundreds of mortgage-backed securities trusts battered by the housing collapse.

U.S. District Judge William H. Pauley said the plaintiffs — four pension funds — could only bring claims under the Trustee Indenture Act in relation to 26 BNY Mellon-controlled trusts in which they invested. The original complaint, filed Aug. 5, sought to recover losses on 530 trusts overseen by...
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