Did You Receive A Notice Regarding A Class Action Lawsuit Settlement?

Some employers recently received a notice in a class action lawsuit entitled Carver, et.al. v. Bank of New York Mellon, et.al. notifying them that they may be entitled to receive a settlement payment. The operative word here is “may” – most, if not all, of the employers who received the notice have not yet been determined to be entitled to receive a settlement payment.

The purpose of this brief memo is to help you regarding the pending action. But, please bear in mind that we are not a law firm and cannot provide legal advice.

The lawsuit in question alleges that The Bank of New York Mellon (BNY) overcharged retirement plans that invest in foreign securities. Investors accused BNY of purposefully giving them unfavorable exchange rates when buying foreign securities with their retirement plan assets, which allegedly allowed the bank to take an undisclosed cut from these transactions. The settlement class includes trustees and fiduciaries of thousands of retirement plans.

According to the legal notice, you have three options:

1. Submit a claim in order to be eligible to receive a payment from the settlement fund,
2. Do nothing, in which case you will not receive a settlement payment, but will be bound by any judgments or orders entered in the action, or
3. Object to the settlement.

In class action settlements such as this one, if it is determined that you have held, directly or indirectly, American Depository Receipts for which BNY acted as the depository, you may be entitled to receive a settlement payment.

However, you should consult with your own legal counsel and consider the relative merits of your own individual claim. If you have questions, please contact your plan advisor.