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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.