SUPREME COURT OF THE STATE OF NEW YORK
THE BANK OF NEW YORK MELLON,
contractual and other obligations to Plaintiff. Accordingly, Plaintiff seeks to hold the
Bank of New York Mellon Corp. (BK), targeted by New York for allegedly violating state law while representing mortgage-bond investors, was accused by Knights of Columbus of damaging its investment in mortgage securities.
Knights of Columbus, a charitable organization that invested in mortgage-backed securities, seeks to recover losses and demands punitive damages from the bank, according to an amended complaint filed today in New York state court in Manhattan.
Bank of New York, which serves as trustee for trusts holding loans underlying mortgage securities, mismanaged the trust assets, Knights of Columbus said in a statement today. It accused the bank in the complaint of gross negligence and recklessness and said the bank’s actions caused a “substantial” loss.
“It is apparent that the defendant knowingly failed in its obligation to receive, process, maintain, and hold all or part of the mortgage files,” Knights of Columbus, based in New Haven, Connecticut, said. As a result, it didn’t acquire mortgage-backed securities, “but instead acquired securities backed by nothing at all,” the organization said.
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Case files and amended complaint below…