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)