Administration March 16, 2012
N.C. Sues Bank of New York Mellon for Pension Loss
March 16, 2012 (PLANSPONSOR.com) – The North Carolina treasurer’s office is suing the Bank of New York Mellon Corp.
Reported by Tara Cantore
The complaint alleges that the Bank of New York Mellon Corp. chose an unauthorized investment that resulted in a $70 million loss to the state employees’ retirement fund, reports The Associated Press.
The North Carolina treasurer stated the bank invested $95 million in state assets in a note issued by Lehman Brothers Holding Inc. However, the investment was unauthorized because it violated North Carolina’s approved investment list.
Lehman Brothers filed for bankruptcy on Sept. 15, 2008, causing the value of the unauthorized investment to decrease by $70 million, reports The Associated Press.
The lawsuit said the state is seeking damages in excess of $10,000 because of breach of contract.