Pension Fund Hits BNY With ERISA Suit Over $16M Losses

Law360, New York (June 19, 2013, 6:52 PM EDT) -- The trustees of a union's pension fund are accusing The Bank of New York Mellon Corp. of making high-risk "prohibited transactions" with the fund’s assets in order to benefit the bank's business partners and maximize its profits, leaving the investor with $16 million in losses, according to a suit filed in Illinois federal court Tuesday.

The bank allegedly used the benefit plan’s funds to invest heavily in Lehman Brothers Holdings Inc. a year before the 2008 financial crisis and refused to offload the unwise investment even...
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