The Bank of New York Mellon Corporation Hit By Investor Class Action Lawsuit Over Alleged Securities Laws Violations

If you purchased shares of in The Bank of New York Mellon Corporation (NYSE: BK) during the period of February 28, 2008 through August 11, 2011 and or pursuant to the May 2009 and June 2010 public offerings of BNY Mellon common stock, you have certain options and there are strict and short deadlines running. Deadline: February 15, 2012. Those NYSE BK stockholders should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Bank of New York Mellon Corporation
Case Name: 
Bank of New York Mellon Corporation Shareholders Class Action 12/15/2011
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: BK
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/15/2011
Class Period Begin: 
02/28/2008
Class Period End: 
08/11/2011
Court of Filing: 
U.S. District Court for the Eastern District of New York
Deadline To File for Lead: 
02/15/2012
Summary: 

San Diego, Dec. 15, 2011 (Shareholders Foundation) -- An investor in shares of in The Bank of New York Mellon Corporation (NYSE:BK) filed a lawsuit in the U.S. in the U.S. District Court for the Southern District of New York against the Bank of New York Mellon Corp. over alleged Violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on behalf of investors in The Bank of New York Mellon Corporation (NYSE: BK) common stock during the period of February 21, 2008 through August 11, 2011, and on behalf of persons who purchased or otherwise acquired Bank of New York Mellon Corporation (Public, NYSE: BK) common stock pursuant and/or traceable to its May 2009 and June 2010 public offerings, that between February 21, 2008 and August 11, 2011 the Bank of New York Mellon Corp and certain of its senior executives violated provisions of the Securities Exchange Act of 1934 by issuing allegedly false and misleading press releases, financial statements, filings with the Securities and Exchange Commission ("SEC") and statements during investor conference calls.

The plaintiff claims that between February 21, 2008 and August 11, 2011 the Bank of New York Mellon Corporation and certain of its senior executives misled investors regarding its financial condition by reporting allegedly inflated revenue and concealing risks attributable to Bank of New York Mellon's alleged participation in a scheme to fraudulently overcharge its custodial clients for foreign currency ("FX") trades.

The plaintiff alleges that in beginning in January 2011, a series of corrective disclosures began to reveal the truth concerning the Bank of New York Mellon's FX trading scheme, the profits derived from that alleged misconduct and the Bank of New York Mellon’s true financial condition and business prospects.
On August 11, 2011, the attorneys general in Virginia and Florida filed civil suits against Bank of New York Mellon Corporation alleging that the bank cheated pension funds in those states by choosing improper prices for currency trades the bank processed for the funds.

On August 12, 2011 a media report said that on August 11, 2011, the attorneys general in Virginia and Florida filed civil suits against Bank of New York Mellon Corporation alleging that the bank cheated pension funds in those states by choosing improper prices for currency trades the bank processed for the funds. The article quoted an email from a the Bank of New York Mellon Corporation executive warning his colleagues that if Bank of New York Mellon Corporation was required to provide "full transparency" to its clients, the clients' "ability to carefully monitor each and every trade at the time of execution" would eat into profits by reducing the Bank of New York Mellon's "margins dramatically." Bank of New York Mellon Corporation strongly denied the allegations of wrongdoing and said the firm treats clients fairly.

Nevertheless, NYSE: BK shares fell from the beginning of January 2011 from over $32 per share to as low as under $17 per share in October 2011 and closed recently at slightly under $18.60 per share.