July 9 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)