BNY Mellon Escapes Mortgage-Backed Securities Class Action

The Bank of New York Mellon Corp. won’t have to face a certified class of investors alleging the bank breached its duty as trustee for five residential mortgage-backed securities trusts, a federal court held Feb. 15.

“Many of the legal and factual issues which must be established for class members to prove their claims cannot be resolved through class-wide proof,” Judge Gregory H. Woods wrote for the U.S. District Court for the Southern District of New York.

The five trusts contained almost 20,000 loans originated by at least 27 different entities, the court said.

Royal Park Investments SA/NV filed a ...