Mellon is seeking to charge its pension fund custodial clients an additional fee for work involving class-action securities litigation settlement claims. Gregg Stein, spokesman, confirmed the fee but declined to disclose the amount or to what extent clients are accepting it without modification. Sources say the fee is 2% of the proceeds of settlements.
"Its very labor intensive as these lawsuit become more complex, he said. "We expect growth in staff and systems to support this work.
He declined to disclose any statistics on the amount of settlement claims Mellon processed this year.