BNY Mellon to Pay $12.5M in Foreign Currency Exchange Suit

Bank of New York Mellon will pay $12.5 million to settle a proposed class action accusing it of charging retirement plans excessive, unauthorized, and undisclosed amounts through the bank’s foreign exchange transactions.

The deal, announced in court papers filed Dec. 14, would end a novel lawsuit attempting to hold the bank liable under the Employee Retirement Income Security Act for allegedly overcharging retirement plans that invest in foreign securities. Investors accused BNY of purposefully giving them unfavorable exchange rates when buying foreign securities with their retirement plan assets, which allegedly allowed the bank to take an undisclosed cut from these ...