FAIRFAX, Va. (AP) — A Fairfax County judge has dismissed a nearly $1 billion lawsuit the state filed against a banking company accused of defrauding Virginia's worker-retirement fund as well as that of Fairfax and Arlington counties.

Circuit Judge R. Terrence Ney ruled that the state wasn't allowed to use the Virginia Fraud Against Taxpayers Act to seek damages against Bank of New York Mellon. Ney ruled that the state could pursue other legal claims such as breach of contract or fraud against the funds, but not VFATA.

Attorney General Kenneth Cuccinelli filed the lawsuit in August, arguing that BNY Mellon profited by falsifying prices for nearly 74,000 foreign-exchange trades. The lawsuit alleged that the bank hid the true costs of buying and selling international currencies, causing Virginia and localities to overpay, then pocketing the difference.