Slow going for plaintiffs so far in currency-trading suits

Civil court cases in two states that involve Bank of New York Mellon being sued for allegedly overcharged clients for currency trades are getting bogged down in the morass of the court system.

Many of these business litigation suits filed under the False Claims Act have been dismissed in partially or completely due to lack of evidence. The plaintiffs have been unable to convince judges that there were fraudulent events that constitute violations of this law. They may soon re-file their cases, however.

Several state attorneys general have charged that the bank gave poor prices for foreign-exchange trading and deceived their clients by assessing their trades at the lowest possible price range of the day. The plaintiffs have also alleged breach of contract and false advertising. So far, the most important claims have been continually blocked by either lack of evidence or the decisions of the courts handling the suits.

Business lawsuits are always complicated, and those involving stock market trading practices can be almost impossible to untangle. The proof required for a successful lawsuit to recoup damages against a bank or trading company can be hard to find and are often hidden within legitimate bookkeeping practices that require the experience and knowledge of a professional to decipher. A professional business attorney can help clients who feel they have been treated unfairly or defrauded by a trading company or a banking entity by giving them sound advice about their rights and possible strategies to recoup losses.

Source: The Wall Street Journal, “Forex Suits Hitting Hurdles,” Christian Berthelsen and Josh Dawsey, Sept. 10, 2012