UPDATE 1-BNY Mellon scores prejudiced forex authorised victory

Fri Nov 18, 2011 3:33pm EST

* Judge dismisses 2 of 3 claims in Virginia forex lawsuit

* Virginia willingly forsaken a explain in a suit

* State wants some-more than $900 mln in penalties, damages

Nov 18 (Reuters) – Bank of New York Mellon Corp said
on Friday a state decider discharged dual of 3 of a remaining
claims in a Virginia lawsuit seeking about $932 million in
penalties and indemnification over unfamiliar sell trades executed for
public grant skeleton in that state.

But a Virginia Attorney General’s bureau pronounced in a
statement a executive explain in a box — that a bank
violated a Fraud Against Taxpayers Act — stays intact. The
case is still move toward trial.

In a dais government on Friday, Fairfax County Circuit Court
Judge Terrence Ney discharged dual forms of fake claim
allegations, or theories, brought opposite BNY Mellon by
Virginia Attorney General Kenneth Cuccinelli. The state
voluntarily forsaken another claim, while a remaining claim
accuses BNY Mellon of formulating fake forex pricing reports.

For BNY Mellon, a world’s largest control bank, the
ruling was significant. It was a initial time a decider ruled on
a fake explain explain in one of a forex lawsuits it is
defending against. False claims principle tend to be similar
from state to state.

“We are gratified that a justice discharged dual of a three
remaining claims brought by (Virginia) and we are gratified
that a decider scheduled a prompt conference on a one remaining
claim,” BNY Mellon pronounced in a statement.

Cuccinelli’s bureau pronounced in a matter a court
unequivocally hold a contribution purported were sufficient to allow
the lawsuit to proceed.

“There were 3 swap theories of how a bank
violated a law,” a matter said. “Two of a three
theories were discharged but prejudice, that means the
commonwealth can refile them if it chooses. But a central
claim … remains.”

In August, Cuccinelli filed a lawsuit opposite BNY Mellon on
behalf of a $50 billion-plus Virginia Retirement System and
other open grant plans. The censure indicted a world’s
largest control bank of charging undisclosed markups on
standing-instruction forex trades.

Standing-instruction trades executed by BNY Mellon and
Boston-based State Street Corp have been a theme of
several lawsuits filed opposite a banks by open pension
plans around a United States. The trades, also called
nonnegotiable trades, are typically for amounts reduction than $1
million.

At a conference set for Dec. 21, BNY Mellon will get another
chance to plea a remaining explain in a case, which
accuses a bank of formulating papers that showed fake forex
prices. Ney disagreed on Friday with BNY Mellon’s authorised team
that a government was misapplied in a case.

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