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Compliance October 10, 2011
Second Law Firm Starts BNY Mellon ERISA Investigation
The law office of Brodsky & Smith, LLC announced that it is
investigating Bank of New York Mellon’s investment of retirement plan
participants’ and beneficiaries’ assets in company stock.
Reported by Rebecca Moore
The investigation concerns whether administrators breached their fiduciary duties and violated the Employee Retirement Income Security Act (ERISA) by investing and/or continuing to invest assets in company stock when it was not a prudent investment for participants’ retirement savings. At one time, approximately 13% of the participants’ assets were held in Company stock.
Brodsky & Smith says it is looking into improper behavior that harmed current and former employees that invested in the 401(k) plan. Specifically, it has been announced that the Attorney Generals for New York, Florida, and Virginia have filed suit accusing the company of overcharging state and other pension funds on foreign exchange fees and defrauding customers in the foreign exchange markets (see “BNY Mellon Sued by U.S. and NY“).
On the same day, the New York-based law firm of Harwood Feffer LLP launched an ERISA investigation (see “BNY Mellon Focus of ERISA Investigation“).