A federal judge in Pittsburgh has rejected a bid by a Bank of New York Mellon unit to dismiss a proposed class action accusing it of imprudently investing thousands of trusts’ assets in poorly performing mutual funds managed by an affiliate.
BNY Mellon had argued that the plaintiffs, beneficiaries of the trusts, made only vague assertions that the mutual funds “underperformed” without establishing that they were an imprudent investment. In a decision on Friday, however, U.S. District Judge Nora Fischer adopted a magistrate judge’s conclusion in April that plaintiffs’ allegations were adequate to survive a motion to dismiss.
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