BNY Mellon Pays $280M To End Sigma Class Action

Law360, New York (July 6, 2012, 12:48 PM EDT) -- BNY Mellon NA has paid $280 million to settle a putative class action in Oklahoma federal court alleging it recklessly sank investors’ money into Sigma Finance Inc., a $27 billion structured investment vehicle that collapsed during the credit crisis, the bank announced Friday.

The bank said it entered into the settlement Thursday with plaintiff CompSource Oklahoma, a state workers' compensation insurance program. BNY continued to invest in Sigma on behalf of CompSource and other investors in 2007 even as reports swirled about its impending demise, the...
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