Bank of New York Mellon Corp., the largest custody bank, reached a deal to end a lawsuit accusing it of defrauding state pension funds through foreign-currency transactions, according to a spokesman for Virginia Attorney General Kenneth Cuccinelli.
Bloomberg reports that the settlement provides $1.14m to Grant Wilson, a former foreign exchange trader at the bank who made the allegations, said a person familiar with the matter who asked not to be identified because a judge hasn’t signed off on the request to dismiss the case.
The money is being paid by the state and not the bank, the person said. The state and the bank filed a request to dismiss the case in state court. The filing couldn’t be immediately confirmed from court records.
'The litigation is over and BNY Mellon and the funds have extended their respective business relationships for 10 years', Brian Gottstein, a spokesman for Cuccinelli, said Thursday in an e-mail. 'The case has been resolved by agreement of the parties, which allowed for the reworking and extension of the funds’ contracts with the bank. This resolution has conferred significant financial benefits for Virginia employees and retirees'.
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