3/9/2010- Pershing LLC, a division of Bank of New York Mellon (NYSE:BK), lost a lawsuit brought on by a German investor seeking damages over options transactions at U.S. exchanges, according to a Bloomberg report.
The company didn't monitor the actions of the broker in Germany that used its online platform, according to the Federal Court of Justice.
The court said, "The local broker illicitly and intentionally damaged the plaintiff with trades that were practically chanceless from the outset due to the fee structure." It added that Pershing "intentionally turned a blind eye to the obvious immorality of local broker's business model."
A spokesperson for Pershing did not immediately reply for comment.
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