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:
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).
that the firm has been overcharging institutional clients as part of foreign
currency trades (see State Street Hit with Forex
More information about Smith’s investigation is available at http://www.howardsmithlaw.com.