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Benefits January 22, 2010
PA Law Firm Probes State Street Stock Drop Case
January 22, 2010 (PLANSPONSOR.com)–A
Bensalem, Pennsylvania, law firm has announced it is considering filing a stock
drop lawsuit against State Street Corporation with potential claims of Employee
Retirement Income Security Act (ERISA) violations.
Reported by PLANSPONSOR staff
Attorney Howard G. Smith said his firm is investigating whether the State Street 401(k) Savings Plan or the Employee Stock Ownership Plan continued to invest in company stock after it was no longer prudent to do so and whether such actions represented a fiduciary breach under ERISA.
The Boston investment company has been hit with a variety of lawsuits in recent months alleging wrongdoing in several State Street operations. The cases include:
- Charges
that investors in company shares between October 2006 and October 2009 lost
money because State Street was not truthful about its exposure to potentially large
financial losses(see State Street Sued Over Stock-Loss Allegations).
- Allegations that State Street mismanagement caused losses relating to its securities lending program (see Cover: Plowing New Fields).
- Charges
that the firm has been overcharging institutional clients as part of foreign
currency trades (see State Street Hit with Forex
Overcharge Suit).
More information about Smith’s investigation is available at http://www.howardsmithlaw.com.
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