AP1, Stockholm, won a ruling from the Commercial Court in London in favor of its lawsuit against former custodian BNY Mellon for negligence in its securities-lending transactions on the sovereign wealth fund's behalf, according to a news release from AP1.
The 240 billion Swedish kronor ($37.5 billion) fund filed a lawsuit in 2010 relating to $33.7 million in losses from securities-lending transactions during the financial crisis. The judge ruled BNY Mellon was liable for the damages to the fund. The exact amount has not been determined yet but will cover most of the loss as well as interest expenses, according to AP1. BNY Mellon may appeal.
“The court found no deliberate attempt by BNY Mellon to mislead, and found we acted properly in both purchasing Sigma (the transaction in question) and in adopting a hold-to-maturity strategy,” said Kevin Heine, BNY Mellon spokesman. “We disagree with the portion of the judgment that ruled against us and are considering our options.”
Officials at AP1 could not be reached for additional information.
