In re Bank of New York Mellon Corp. Forex Transactions Litigation


Settlement Update

On February 29, 2016, the Court issued an Order Approving the Distribution Plan for the Net Settlement Proceeds and Request for Reimbursement of Litigation Expense. A copy of the Order is posted under Court Documents. Distribution of the Net Settlement Proceeds took place on April 25, 2016.

Summary of the Settlement

A settlement for $335,000,000 in cash has been reached in the In re Bank of New York Mellon Corp. Forex Transactions Litigation (the “Litigation”) by and among (i) Southeastern Pennsylvania Transportation Authority, International Union of Operating Engineers, Stationary Engineers Local 39 Pension Trust Fund, Ohio Police & Fire Pension Fund, School Employees Retirement System of Ohio, Carl Carver, Deborah Jean Kenny, Edward C. Day, Joseph F. Deguglielmo, Lisa Parker, Frances Greenwell-Harrell, and Landol D. Fletcher, on behalf of themselves and each member of the Settlement Class, (collectively the “Plaintiffs”) and (ii) The Bank of New York Mellon Corporation, The Bank of New York Mellon, The Bank of New York Company, Inc., The Bank of New York, Mellon Bank N.A., The Bank of New York Mellon Trust Company, N.A. (formerly known as the Bank of New York Trust Company, N.A.), and BNY Mellon, N.A. (collectively “BNYM”), and unnamed individuals designated as Does 1–20 in the second amended class action complaint filed on June 9, 2014 in Carver v. The Bank of New York Mellon, et al., No. 1:12-cv-09248-LAK (S.D.N.Y.) and the amended class action complaint filed on September 29, 2014 in Fletcher v. The Bank of New York Mellon, et al., No. 14-CV-5496 (LAK) (S.D.N.Y.) (together with BNYM, the “Defendants”).

This settlement resolves allegations stemming from Defendants' transaction of foreign exchange ("FX") trades pursuant to "standing instructions" with Plaintiffs (or the plans they represent) and Defendants' other custodial customers. According to the allegations in Plaintiffs’ complaints, Defendants usually priced “standing instruction” FX trades near the high and low edges of the daily range of interbank rates in the manner most beneficial to BNYM – notwithstanding Defendants’ alleged contractual obligations and representations, as well as in violation of Defendants’ alleged fiduciary and statutory responsibilities to their custodial customers.

In addition to the $335,000,000 obtained from the settlement of the Litigation (the “Settlement Amount”), the Settlement Class will also receive a distribution of $155,000,000 pursuant to a settlement that Defendants reached with the New York Attorney General (the “NYAG Settlement Amount”). BNYM has also entered into a settlement with the United States Department of Labor relating to the standing instruction FX program. Pursuant to that settlement, BNYM will, among other things, pay $14,000,000 for the benefit of ERISA plans (“DOL Settlement Amount”). The NYAG Settlement Amount and DOL Settlement Amount will be combined with the Settlement Amount and distributed by the Claims Administrator to Settlement Class Members in accordance with the Plan of Allocation approved by the Court.

Who is Included in the Settlement Class?

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.

As set forth in the full Notice, there are exceptions to being included in the Settlement Class.

Please be sure to read the full Notice to fully understand your rights.