BNY Mellon Must Face N.Y. Fraud Case on Currency TradesDavid McLaughlin
Bank of New York Mellon Corp. must face a lawsuit by the New York attorney general that accuses the world’s largest custody bank of defrauding clients in foreign-exchange transactions.
Justice Marcy Friedman of New York state Supreme Court in in Manhattan ruled fraud claims brought by state Attorney General Eric Schneiderman can proceed, according to a decision dated yesterday.
BNY Mellon was sued in 2011 by Schneiderman, who accused the bank of a 10-year fraud through the pricing of foreign-exchange transactions. Manhattan U.S. Attorney Preet Bharara also has a lawsuit pending against the bank over the same issue, claiming it defrauded clients of more than $1.5 billion, according to court papers.
Friedman dismissed some claims at issue in the state case, including those for violations of state and city false claims laws.
“We continue to believe the remaining claims are unwarranted, and we will vigorously defend against them,” BNY Mellon spokesman Kevin Heine said in a statement.
Melissa Grace, a spokeswoman for Schneiderman, declined to immediately comment on the judge’s ruling.
The case is People of the State of New York v. Bank of New York Mellon Corp., 114735-2009, New York state Supreme Court (Manhattan).