A Virginia judge has refused BNY Mellons bid to have the lawsuit filed against it by the states attorney general dismissed, but the judge did drop some of the suits charges against the custodian.
The lawsuit claims BNY Mellon overcharged Virginia pensions on foreign exchange transactions. The custodian is facing similar lawsuits in Florida and New York, and Massachusetts is investigating the way BNY Mellon charged its FX transactions.
BNY Mellon argued that the case couldnt be brought under the Virginia Fraud Against Taxpayers Act because alleged false or fraudulent claims were never submitted to the state for payment, according to Bloomberg. The judge refused to drop the case but threw out two of three claims in the suit. The central claimthat the custodian defrauded the pensions by overcharging on FX transactionsremains.
The civil suit seeks more than $900 million in damages and penalties.
The next hearing in the case is set for December 21, according to Bloomberg.
(CG)