SOURCE: Bernstein Litowitz Berger & Grossmann LLP

December 15, 2011 17:03 ET

Bernstein Litowitz Berger & Grossmann LLP Announces Securities Class Action Suit Filed Against The Bank of New York Mellon Corporation and Certain of Its Senior Executives and Other Defendants

NEW YORK, NY--(Marketwire - Dec 15, 2011) - Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it has filed a securities class action lawsuit on behalf of its client the Louisiana Municipal Police Employees' Retirement System ("LAMPERS") against The Bank of New York Mellon Corporation ("BNY Mellon" or the "Company") (NYSE: BK) and certain of its senior executives and directors, as well the underwriters of two public offerings of BNY Mellon common stock conducted in May 2009 and June 2010 (the "Offerings"). The action, which is captioned Louisiana Municipal Police Employees' Retirement System v. The Bank of New York Mellon Corporation, No. 11-cv-9175 (S.D.N.Y.), asserts claims under the Securities Exchange Act of 1934 ("Exchange Act") on behalf of investors in BNY Mellon common stock during the period of February 21, 2008 through August 11, 2011 (the "Class Period"), and seeks remedies under the Securities Act of 1933 ("Securities Act") on behalf of persons who purchased or otherwise acquired BNY Mellon common stock pursuant and/or traceable to the Offerings.

The Complaint alleges that during the Class Period, BNY Mellon and certain of its senior executives violated provisions of the Exchange Act by issuing false and misleading press releases, financial statements, filings with the Securities and Exchange Commission ("SEC") and statements during investor conference calls. As alleged in the Complaint, throughout the Class Period, BNY Mellon and certain of its senior executives misled investors regarding the Company's financial condition by reporting inflated revenue and concealing risks attributable to BNY Mellon's participation in a scheme to fraudulently overcharge its custodial clients for foreign currency ("FX") trades. The Complaint also seeks remedies under the Securities Act against BNY Mellon, certain of the Company's senior officers and directors, and certain underwriters for material misstatements and omissions contained in materials issued in connection with the Offerings.

Beginning in January 2011, a series of corrective disclosures began to reveal the truth concerning BNY Mellon's FX trading scheme, the profits derived from that misconduct and the Company's true financial condition and business prospects. Specifically, disclosures concerning the unsealing of several whistleblower lawsuits against BNY Mellon, including those in Virginia and Florida, the intervention in those suits by the attorneys general of Florida and Virginia, as well as a series of news articles examining the Company's improper FX trading practices, caused the price of BNY Mellon stock to drop precipitously. As alleged in the Complaint, one news article published in The Wall Street Journal on August 12, 2011 quoted internal Company emails from a BNY Mellon executive that admitted that providing "full transparency" into the Company's FX trading practices to its custodial clients would reduce BNY Mellon's profit margins "dramatically." As a result of these disclosures, BNY Mellon's shares fell from $31.95 per share on January 21, 2011 to a closing price of $19.99 per share on August 12, 2011 -- a decline of over 37% that represents a market capitalization loss of over $14 billion. Since the end of the Class Period, both the New York Attorney General and the U.S. Department of Justice filed actions against BNY Mellon alleging claims arising out of the Company's FX trading practices, which are also reportedly the subject of an investigation by the SEC.

If you wish to serve as lead plaintiff for the Class in this action, you must file a motion with the Court no later than 60 days from today. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

LAMPERS is represented by BLB&G, a firm of over 50 attorneys with offices in New York, California, Illinois, and Louisiana. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Gerald H. Silk of BLB&G at 212-554-1282, or via email at jerry@blbglaw.com, or Avi Josefson at 212-554-1493, or via e-mail at avi@blbglaw.com.

Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.

Contact Information

  • CONTACT:
    Gerald H. Silk
    Bernstein Litowitz Berger & Grossmann LLP
    1285 Avenue of Americas, 38th Floor
    (212) 554-1282

    Avi Josefson
    Bernstein Litowitz Berger & Grossmann LLP
    1285 Avenue of Americas, 38th Floor
    (212) 554-1493