State Street Evades Mortgage-Related Securities Suit

Law360, New York (February 26, 2010, 6:31 PM EST) -- A federal judge has dismissed with prejudice a putative class action that accused State Street Corp., its investment management arm and 10 individuals of making material misrepresentations about one of their funds that invested heavily in mortgage-related securities.

The plaintiffs had alleged that the fund's offering documents contained a misleading description of the fund's investment strategy, misrepresentations of the extent of the fund’s exposure to mortgage-related securities and inflated valuations of the fund’s mortgage-related holdings.

But in an opinion filed Thursday with the U.S. District Court...
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