A Kendall Law Group news release about its federal court suit filed in Massachusetts charged that the scheme resulted in clients being forced to overpay for the foreign currency trades. Company statements made between October 17, 2006 and October 19, 2009 were misleading about the scheme and caused the share price to be overinflated, the suit claimed.
When California officials filed an October 2009 fraud suit over alleged overcharges to the state’s public pension funds, State Street shares dropped almost 8.5% to close at $47.84, according to the new suit announcement (see CA Charges State Street for ‘Unconscionable Fraud’ against Pension Funds).
A Los Angeles law firm filed a similar suit against State Street about the foreign currency trade issue in December (see State Street Hit with Forex Overcharge Suit).
More information is at www.kendallawgroup.com.