Bank of New York To Pay $28 Million In Whistleblower Lawsuit

tax moneyBank of New York Mellon (NYSE: BK) agreed to pay $28 million to resolve a lawsuit involving the Florida Retirement System Trust Fund.

Florida filed a lawsuit in 2011, alleging that the big bank, as the custodian of the trust fund, overcharged it for foreign currency transactions. The case began as a whistleblower lawsuit in 2009 by FX Analytics.

The lawsuit also involved a claim that BNY Mellon improperly had the trust fund invest in Sigma Finance, which later went into receivership.

Bondi said the settlement gives the trust fund “full compensation.” If the state had won a judgment, it could have received treble the damages.

Despite the litigation, the Florida State Board of Administration, which includes Bondi, rehired BNY Mellon as the custodian of the trust fund in October.  (article)

 

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