PA Law Firm Probes State Street Stock Drop Case

January 22, 2010 ( 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.

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).  

More information about Smith’s investigation is available at