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Case Status:    SETTLED
On or around 02/10/2017 (Other)

Filing Date: December 14, 2011

According to a press released dated December 15, 2011, the plaintiffs filed a class action lawsuit on behalf of purchasers of the common stock of the Company and certain of its senior executives and directors, as well the underwriters of two public offerings of the Company’s common stock conducted in May 2009 and June 2010.The action asserts claims under the Securities Exchange Act of 1934 ("Exchange Act") on behalf of investors in the Company’s common stock during the period of February 21, 2008 through August 11, 2011 (the "Class Period"), and seeks remedies under the Securities Act of 1933 ("Securities Act") on behalf of persons who purchased or otherwise acquired common stock pursuant and/or traceable to the Offerings.

The Complaint alleges that during the Class Period, the Company and certain of its senior executives violated provisions of the Exchange Act by issuing false and misleading press releases, financial statements, filings with the Securities and Exchange Commission ("SEC") and statements during investor conference calls. As alleged in the Complaint, throughout the Class Period, the defendants misled investors regarding the Company's financial condition by reporting inflated revenue and concealing risks attributable to the Company’s participation in a scheme to fraudulently overcharge its custodial clients for foreign currency ("FX") trades. The Complaint also seeks remedies under the Exchange Act for material misstatements and omissions contained in materials issued in connection with the Offerings.

Beginning in January 2011, the plaintiffs assert a series of corrective disclosures began to reveal the truth concerning the Company’s FX trading scheme, the profits derived from that misconduct and the Company's true financial condition and business prospects. Specifically, disclosures concerning the unsealing of several whistleblower lawsuits against the Company, including those in Virginia and Florida, the intervention in those suits by the attorneys general of Florida and Virginia, as well as a series of news articles examining the Company's improper FX trading practices, caused the price of stock to drop precipitously. As alleged in the Complaint, one news article published in The Wall Street Journal on August 12, 2011 quoted internal Company emails from an executive that admitted that providing "full transparency" into the Company's FX trading practices to its custodial clients would reduce the Company’s profit margins "dramatically." As a result of these disclosures, shares fell from $31.95 per share on January 21, 2011 to a closing price of $19.99 per share on August 12, 2011-a decline of over 37% that represents a market capitalization loss of over $14 billion. Since the end of the Class Period, both the New York Attorney General and the U.S. Department of Justice filed actions against the Company alleging claims arising out of the Company's FX trading practices, which are also reportedly the subject of an investigation by the SEC.

On March 29 2012, an order appointing lead plaintiff and lead counsel was issued by the court.

On May 11, 2012, a Consolidated Class Action Complaint was filed by the lead plaintiffs.

On June 10, 2013, the Court denied without prejudice the defendants' motion to dismiss the class action

On November 15, 2013, the Court granted the defendant Bank of New York Mellon's motion for emergency relief.

COMPANY INFORMATION:

Sector: Financial
Industry: Regional Banks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: BK
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 11-CV-09175
JUDGE: Hon.Lewis A. Kaplan
DATE FILED: 12/14/2011
CLASS PERIOD START: 02/28/2008
CLASS PERIOD END: 08/11/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 11-CV-09175
JUDGE: Hon.Lewis A. Kaplan
DATE FILED: 05/11/2012
CLASS PERIOD START: 02/28/2008
CLASS PERIOD END: 10/04/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
No Document Title Filing Date
No Document Title Filing Date