Federal Court Preliminarily Approves $280 Million Settlement in BNY Mellon Securities Lending Litigation

June 6, 2012

 

On July 6, 2012, the United States District Court for the Eastern District of Oklahoma preliminarily approved a $280,000,000 cash settlement in Compsource Oklahoma, et al. v. BNY Mellon, N.A., et al., Case No: Civ 08-469-KEW. As part of its Order, the Court preliminarily certified a Class consisting of:

All clients of BNY Mellon’s securities lending business that, as of October 1, 2008, held medium term notes issued either by Sigma Finance Inc. or Sigma Finance Corp. through such client’s participation in a collective investment pool, (ii) the Texas Permanent School Fund, and (iii) The William and Flora Hewlett Foundation.

Excluded from the foregoing definition are (i) participants in the Mellon Capital Fund, (ii) The Regence Group Retirement Plan, Regence Blue Cross Blue Shield of Oregon, Regence Blue Cross Blue Shield of Utah, Regence Blue Shield, Regence Blue Shield of Idaho, Regence HMO Oregon, Asuris Northwest Health, Commencement Bay Life Insurance Company, Healthwise and Regence Life and Health Insurance Company (“Regence”), (iii) Pacific Select Funds, (iv) The Bank of Korea, (v) AP1, (vi) The Bank of Colombia, and (vii) Achmea Schadeverzekeringen N.V., Achmea Verzekeringsholding N.V., Achmea P & L Insurance, Stichting Achmea Zorgverzekeringen Beleggingen (“Achmea”).

We also will post the notice and pertinent settlement pleadings on this website for your review. The notice will contain detailed information regarding the settlement, and its benefits. The Court has set the final approval hearing for October 25, 2012 at 1:30 p.m., in the United States District Court for the Eastern District of Oklahoma.

All settlement efforts were presided over by former United States District Judge and U.S. Attorney Layn Phillips. The Parties reached this settlement after three and a half years of hard fought, intense, litigation. The parties completed discovery prior to reaching a settlement agreement. Nearly five million pages of documents were produced and reviewed in this case. Plaintiffs’ Counsel took or defended a total of 59 depositions, 12 of which took place over multiple days. These depositions took place in seven different states across the country: New York, Texas, California, Maryland, Oklahoma, Pennsylvania, and Missouri. These depositions resulted in 16,483 pages of recorded testimony and the inclusion of 1,738 exhibits.

NPR’s complex litigation team—partners Jeff Angelovich, Brad Beckworth and Susan Whatley and associates Lisa Baldwin, and Trey Duck—led the prosecution of this case.