BNY Mellon Can’t Nix Retirement Plans’ Suit Over Forex Transactions

Bank of New York Mellon must defend a proposed class action accusing it of charging excessive, unauthorized and undisclosed rates to seven retirement plans through the bank’s foreign exchange transactions (Carver v. Bank of N.Y. Mellon, 2017 BL 105050, S.D.N.Y., 1:15-cv-10180, 3/31/17).

Because the participants are suing in their representative capacity on behalf of the plans, they don’t need to allege an individualized injury to have standing, federal district Judge J. Paul Oetken held March 31. Alleging that BNY Mellon’s foreign exchange pricing methodology contributed to the plans’ financial losses is sufficient to confer them standing on their ...