BNY Mellon To Pay MedCap Investors $114M Over Ponzi Plot

Law360, New York (February 22, 2013, 12:16 PM EST) -- Bank of New York Mellon Corp. has agreed to pay $114 million to resolve investor claims in a consolidated class action over its role in Medical Capital Holdings Inc.'s massive Ponzi scheme, according to settlement documents filed Thursday in California federal court.

The settlement, if approved, frees BNY Mellon from all noteholder actions over the bank’s alleged failure to review MedCap's dealings before disbursing investor funds to the company. The deal comes after the bank paid MedCap’s receivership estate $57 million in June to settle the...
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