Class Action News

Investors Sue BNY Mellon on Trusts,
Allege Violation of Trust Indenture Act

Aug. 18, 2014, 4:00 AM

Investors in five residential mortgage-backed securities (RMBS) trusts sued The Bank of New York Mellon, saying BNY Mellon failed to meet its obligations as trustee after learning of defects in the trusts (Royal Park Investments SA/NV v. The Bank of New York Mellonfiled).

The Aug. 14 complaint by Royal Park Investments SA/NV in the U.S. District Court for the Southern District of New York said BNY Mellon took no action despite learning that securitization sponsors and sellers of underlying loans breached representations and warranties (R&Ws) in connection with the trusts.

“BNY Mellon’s multiple breaches and failures to act...

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