Bank of New York Mellon Corp. must face a Los Angeles pension fund’s lawsuit accusing the bank of overcharging for foreign exchange transactions, a judge ruled, according to those good people at Bloomberg.
While U.S. District Judge William Alsup in San Francisco yesterday threw out allegations under the California False Claims Act, he refused the bank’s request to toss claims of breach of contract, breach of fiduciary duty, unfair business practices and fraud by concealment. He dismissed those same claims another Los Angeles pension fund and funds in San Diego and Stanislaus counties and said they could be refiled in courts in those locations.
The funds said in a complaint filed last year that New York-based BNY Mellon said it would use “best practices” when executing foreign exchange transactions to give its clients the highest price when in fact it used the least advantageous prices and secretly profited from the difference…..
Read more at http://www.bloomberg.com/news/2012-03-30/bank-of-new-york-mellon-must-face-fraud-contract-breach-suit.html