BNY Mellon to Pay $180 Million to Settle Forex Lawsuit

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Bank of New York Mellon Corp. will pay $180 million to settle a class-action lawsuit related to its foreign-exchange business.

The settlement will result in a pretax charge of $50 million in the second quarter, the New York-based bank said Thursday in a regulatory filing.

“This settlement effectively resolves virtually all of the currently pending foreign exchange-related actions, with the exception of several lawsuits brought by individual customers,” the firm said in the filing.

BNY Mellon in March agreed to pay $714 million to settle allegations by the U.S. and New York state that it defrauded clients in foreign-exchange transactions for as long as a decade.

The federal and state officials alleged in the suits filed in 2011 that the bank misled investors by promising it would provide the best rates available when executing trades. Instead, the bank obtained the best rates for itself and gave less favorable terms to customers, pocketing the difference, the lawsuits alleged.

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