Bank of New York Mellon (BNY Mellon) has been hit with a penalty of $180m to settle a foreign exchange-related putative class action lawsuit.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
According to the bank, the latest settlement will release it from all foreign exchange-related securities law claims against itself or its affiliates.
Commenting on the latest settlement, the bank said in a filing: "This settlement effectively resolves virtually all of the currently pending foreign exchange-related actions, with the exception of several lawsuits brought by individual customers."
In lawsuits filed in 2011, the federal and state officials accused the lender of misleading investors by promising that it would offer best rates available when carrying out trades.
However, in reality, the bank was accused of securing best rates for itself and offered less favourable ones to customers, and pocketing the difference.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe bank agreed to pay $714m as penalty in March to settle allegations by the Justice Department and New York authorities that it overcharged pension funds and other clients in foreign currency transactions.
