BNY Mellon Investors’ Self-Dealing Proposed Class Suit Dismissed

Bank of New York Mellon Corp. convinced a federal court to dismiss a proposed class action that said the bank failed to disclose conflicts of interest created by investing wealth-management money into BNY funds.

The Pennsylvania law claim is preempted by the Securities Litigation Uniform Standards Act, which means it can’t proceed as a class action under a state cause of action, the US District Court for the Western District of Pennsylvania said.

Stephen and Leslie Walden said that several million dollars of their money went to underperforming funds that benefited BNY financially. The Waldens said their agreement with BNY ...