The Bank of New York Mellon Corp. and institutional investor clients who sued the giant bank over its forex charges settled the multidistrict litigation (MDL) for $335 million. As part of the deal, the Plaintiff's counsel will receive $83.75 million in attorneys' fees.
The settlement resolves claims BNY Mellon mislead customers with its Standing Instruction Service (SIS), which executes foreign exchange transactions for its custodial clients. The plaintiffs alleged that although they were told they were provided the “best execution,” the bank instead charged the most expensive price of the trading day, or close to it, and paid the lowest price when they sold them, with the bank keeping the spread.
The bank had already beaten a shareholder derivative suit in the MDL in July 2013 when the presiding judge ruled the complaint failed to show that the bank’s board of directors knew of and allowed the alleged wrongdoing.
The experienced securities fraud attorneys at Colling Gilbert Wright & Carter represent investors in the Commodities Futures Trading Commission (CFTC) and the National Futures Association (NFA). If you have lost money as a result of an investment in foreign currencies or other commodities, please contact us for a free case evaluation