Shareholder Class Action Against State Street Tossed

Law360, New York (March 4, 2010, 2:12 PM EST) -- A federal judge has tossed a putative shareholder class action accusing State Street Corp. and State Street Global Advisors of inflating the value of certain mortgage-backed securities, saying the complaint failed to show that the bank made conscious, material misrepresentations.

While State Street overreported the value of its mortgage-backed securities, the plaintiffs could not show that the bank knowingly departed from the information available to it at the time, according to an order from U.S. District Judge Richard J. Holwell of the Southern District of New...
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