New York’s attorney general sued Bank of New York Mellon Corp. in state court Tuesday, alleging that one of the world’s largest custody banks defrauded pension funds when it improperly charged for currency transactions.
In a civil complaint, New York Attorney General Eric Schneiderman says he is seeking nearly $2 billion—the amount that the bank had generated in profits in the alleged scheme.
The lawsuit is the latest legal threat to hit BNY Mellon over how it processed currency transactions. In August, attorneys general in Virginia and Florida sued the bank in legal claims that also allege improper pricing for currency transactions.
In the complaint, Mr. Schneiderman alleges that the bank fraudulently charged clients for …