New York Attorney General Sues NY Mellon Corp. (BK)

New York Attorney General Andrew Cuomo has filed a lawsuit against the Bank of New York Mellon Corp. BK. The unit has been sued for withholding information about Madoff’s investment firm from its clients. According to Reuters, the lawsuit claims that Ivy Asset Management knew that Madoff was not investing client funds as advertised. However, the NY Mellon Bank (BK) unit chose to remain silent in order to make millions of dollars in advisory fees. The Attorney General has also sued two former senior executives of the bank. The attorney general further said that the unit defrauded dozens of New York union pension and welfare plans and hundreds of individual investors. The lawsuit has been filed in New York State Supreme Court in Manhattan. Bank of New York Mellon did not issue any comment.