Judge Says BNY Mellon Didn't Breach Duties In Buyout

Law360, New York (February 29, 2012, 3:52 PM EST) -- A New York state judge ruled Tuesday that Bank of New York Mellon did not breach its fiduciary duties when it approved Bassell AF SCA's disastrous leveraged buyout of Lyondell Chemical Co., which bankrupted both companies and made hedge fund plaintiffs lose $1 billion.

New York State Supreme Court Judge Shirley Werner Kornreich granted BNY Mellon's motion to dismiss the hedge funds' claims for breach of fiduciary duty, but said claims for breach of contract and negligence could go forward.

Judge Kornreich agreed with BNY Mellon's...
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