Bank of New York Mellon Corp will pay $180 million to settle a foreign exchange-related putative class action lawsuit, the bank said in a regulatory filing on Thursday. The world's No 1 custody bank expects to record a pretax charge of $50 million in the second quarter related to the settlement. BNY Mellon said the settlement will release the bank from all foreign exchange-related securities law claims brought against it or its affiliates in the suit.
Federal and New York state authorities, among others, had accused BNY Mellon of giving clients prices for their currency transactions at or near the worst interbank rates during the trading day despite telling them it would provide the best possible execution. The bank agreed in March to pay $714 million to settle allegations that it overcharged pension funds and other clients for foreign exchange services. Shares of the bank closed at $43.64 on the New York Stock Exchange on Thursday.
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