Bloomberg News

BNY Seeks Dismissal of Florida Currency-Trading Lawsuit

November 16, 2011

(Updates with excerpt from filing in third paragraph.)

Nov. 16 (Bloomberg) -- Bank of New York Mellon Corp. asked a court to dismiss a lawsuit brought by the Florida attorney general that accuses the bank of profiting from foreign-exchange trades at the expense of the state retirement fund.

The state’s complaint should be thrown out because the bank never promised to trade currencies the way the attorney general described, BNY Mellon said in a Nov. 14 court filing in Leon County, Florida.

“The contract does not contain any promise to buy and sell foreign currencies to and from the fund at ‘actual cost’ or at the rates that BNYM itself obtained on the interbank market,” the bank said in the filing.

BNY Mellon is fighting several lawsuits over how it conducts foreign-exchange transactions on behalf of public pension funds.

Florida Attorney General Pam Bondi claims the bank caused the Florida Retirement System Trust Fund to pay more than it should have for currency purchases and receive less than it should have for sales. BNY Mellon overcharged the fund by millions of dollars, Bondi said in a statement in August.

The case is State of Florida v. Bank of New York Mellon, 2009 CA 4140, Second Judicial Circuit, Leon County.

--Editors: Andrew Dunn, Stephen Farr

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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