BNY Mellon settles Sigma lawsuit
09 July 2012 New York
Image: Shutterstock
BNY Mellon has agreed to settle a class action lawsuit for up to $280 million.
Workers’ compensation insurance company CompSource Oklahoma filed the lawsuit against BNY Mellon in December 2008 in the US District Court for the Eastern District of Oklahoma.
The case was filed due losses connected with the investment of securities lending collateral in Sigma Finance, a structured investment vehicle that failed in October 2008.
BNY Mellon said its Q2 2012 results would include an after-tax charge of $210 million that would cover the settlement in part. The settlement is subject to court approval.
Gerald Hassell, the chairman, president and CEO of BNY Mellon, said: “The Sigma settlement agreement reflects the meaningful progress we are making in navigating the litigation environment that affects our company and the industry overall. We are putting this litigation behind us, with no significant impact on our capital position, while continuing to make headway on other matters.”
Workers’ compensation insurance company CompSource Oklahoma filed the lawsuit against BNY Mellon in December 2008 in the US District Court for the Eastern District of Oklahoma.
The case was filed due losses connected with the investment of securities lending collateral in Sigma Finance, a structured investment vehicle that failed in October 2008.
BNY Mellon said its Q2 2012 results would include an after-tax charge of $210 million that would cover the settlement in part. The settlement is subject to court approval.
Gerald Hassell, the chairman, president and CEO of BNY Mellon, said: “The Sigma settlement agreement reflects the meaningful progress we are making in navigating the litigation environment that affects our company and the industry overall. We are putting this litigation behind us, with no significant impact on our capital position, while continuing to make headway on other matters.”
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