State Street reaches $60 mln settlement over forex pricing

July 9 Wed Jul 9, 2014 10:43am EDT

July 9 (Reuters) - State Street Corp has reached a $60 million settlement of a shareholder lawsuit that accused it of overcharging clients for foreign exchange services, and falsely stating it invested only in "high quality" assets, according to a court filing.

Shareholders claimed that State Street's unauthorized "mark-ups" on foreign exchange transactions added potentially hundreds of millions of dollars to the Boston-based custodial bank's revenues. They said State Street's shares tumbled after California's attorney general sued in October 2009 over the alleged improper mark-ups, causing damages.

Settlement papers were filed on Tuesday in Boston federal court. The accord requires court approval. (Reporting by Jonathan Stempel in New York)

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