Bank of New York Mellon Corp. must face a lawsuit by the New York Attorney General that accuses the world’s largest custody bank of defrauding clients in foreign-exchange transactions, Bloomberg News reported yesterday. Justice Marcy Friedman of the New York state Supreme Court ruled that fraud claims brought by the state Attorney General Eric Schneiderman can proceed, according to a decision dated yesterday. BNY Mellon was sued in 2011 by Schneiderman, who accused the bank of a 10-year fraud through the pricing of foreign-exchange transactions for private and government clients. Manhattan U.S. Attorney Preet Bharara also has a lawsuit pending against the bank over the same issue.
