BNY Mellon Can't Shake Forex Pricing Fraud Suit

Law360, New York (February 14, 2012, 10:12 PM ET) -- A California federal judge on Tuesday refused to toss a putative class action accusing The Bank of New York Mellon Corp. of defrauding pension funds by inflating the costs of foreign exchange transactions, saying the plaintiff pension fund had sufficiently sustained its allegations.

The lawsuit, lodged in July, claims BNY Mellon charged the plaintiffs rates on foreign exchange transactions that were higher than the rates at which the bank actually performed the transactions and pocketed the difference.

BNY Mellon issued monthly reports that listed the fictitious...
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