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LAW FIRM OF CHIMICLES, BURT, JACOBSEN & MCNEW FILE CLASS ACTION SUIT AGAINST MELLON BANK

 PHILADELPHIA, July 30 /PRNewswire/ -- The Haverford, Pa.-based law firm of Chimicles, Burt, Jacobsen & McNew on Wednesday filed a class action suit in Philadelphia federal court against Mellon Bank, N.A. and its directors alleging violations of the National Bank Act, the Securities Exchange Act of 1934, and certain Pennsylvania laws in connection with Mellon's practice of charging "sweep fees" to its trust customers when it "sweeps" cash from the trust accounts into various short-term investments.
 The suit was brought on behalf of plaintiff William I. Simpson Jr., a beneficiary of a trust managed by Mellon, who seeks to represent a class consisting of himself and more than 5,000 other beneficiaries of fiduciary accounts managed by Mellon who also were charged the allegedly unlawful fees. The complaint alleges that the bank violated federal law including the National Bank Act by charging unreasonable sweep fees to trust customers.
 Following a week-long trial in federal court in Philadelphia last August, U.S. District Judge Marvin Katz ordered Mellon to refund to class members all fees collected from class members. That order was reversed on appeal by the U.S. Third Circuit Court of Appeals, which ruled in May that the federal court did not have jurisdiction over the subject matter of the case as it was then stated. The current suit is being handled on behalf of the plaintiffs by attorneys C. Oliver Burt III and Michael D. Gottsch, of the Chimicles, Burt firm, along with co-counsel Marguerite R. Goodman and Howard Harrison.
 /delval/
 -0- 7/30/93
 /CONTACT: Oliver Burt of Chimicles, Burt, Jacobsen & McNew, 215-642-8500/
 (MEL)


CO: Chimicles, Burt, Jacobsen & McNew; Mellon Bank, N.A. ST: Pennsylvania IN: FIN SU:

JM-LJ -- PH034 -- 7845 07/30/93 15:05 EDT
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Publication:PR Newswire
Date:Jul 30, 1993
Words:290
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