The Bank of New York Mellon Corporation (NYSE: BK) Investor Securities Class Action Lawsuit 12/14/2011

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Company Name(s): 
Bank of New York Mellon Corporation
Case Name: 
Bank of New York Mellon Corporation Shareholders Class Action 12/14/2011
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: BK
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/15/2011
Class Period Begin: 
01/12/1999
Class Period End: 
01/17/2012
Court of Filing: 
U. S. District Court for the Southern District of New York
Deadline To File for Lead: 
02/13/2012
Date Settled: 
04/23/2015
Settlement Amount: 
$335,000,000
Summary: 

The Settlement Class is defined as follows:

All domestic custody customers of BNYM that used BNYM’s Standing Instruction FX Program between January 12, 1999 and January 17, 2012 (see Settlement Notice link for further details).

September 24, 2015 - The court held a final settlement hearing and approved the settlement and entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.

April 23, 2015 - The court preliminarily approved the settlement.

March 19, 2015 - Parties filed a stipulation of settlement.

November 15, 2013 - The court granted the defendants' motion for emergency relief.

August 21, 2013 - The motions to dismiss a particular case's class action and amended complaints was denied as moot.

December 20, 2012 - The defendants filed another motion to dismiss.

October 11, 2012 - The court ordered the voluntary dismissal of two plaintiffs without prejudice.

July 31, 2012 - Two plaintiffs filed a notice of voluntary dismissal.

July 9, 2012 and July 16, 2012 - Additional defendants filed a motion to dismiss.

June 22, 2012 - Defendants filed a motions to dismiss.

May 11, 2012 - The lead plaintiff filed an amended consolidated complaint on behalf of purchasers of Bank of New York Mellon Corporation (The) (NYSE: BK) common shares during the period of February 28, 2008 through October 4, 2011, and/or traceable to its May 2009 and June 2010 public offerings. . The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between February 21, 2008 and August 11, 2011.

April 16, 2012 - The court ordered all cases transferred to the U.S. District Court for Southern District of New York and consolidated into a multi-district case.

March 29, 2012 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

December 14, 2011 - An investor in shares of Bank of New York Mellon Corporation (The) (NYSE: BK) filed a lawsuit in the U.S. District Court for the Southern District of New York against Bank of New York Mellon Corporation (The) over alleged violations of Federal Securities Laws in connection with allegedly false and misleading statements made between February 21, 2008 and August 11, 2011.

According to the complaint the plaintiff alleges on behalf of investors in Bank of New York Mellon Corporation (The) (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 (The) (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 Bank of New York Mellon Corporation (The) 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 Bank of New York Mellon Corporation (The) 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 Corporation'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 Bank of New York Mellon Corporation's FX trading scheme, the profits derived from that alleged misconduct and Bank of New York Mellon Corporation’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 (The) 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 (The) 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 Bank of New York Mellon Corporation (The) executive warning his colleagues that if Bank of New York Mellon Corporation (The) 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 Bank of New York Mellon Corporation's "margins dramatically." Bank of New York Mellon Corporation (The) strongly denied the allegations of wrongdoing and said the firm treats clients fairly.

Nevertheless, Bank of New York Mellon Corporation (The) (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