State Street Sued By Ark. Fund Over Forex Deals

Law360, New York (February 10, 2011, 8:23 PM EST) -- Boston-based custody bank State Street Corp. was hit with a proposed class action Thursday by an Arkansas pension fund alleging it overcharged for foreign currency exchange transactions.

The suit, filed by the Arkansas Teacher Retirement System in the U.S. District Court for the District of Massachusetts, accuses State Street of charging the fund inflated rates to buy foreign currency for the past decade, in violation of Massachusetts law.

The retirement fund alleges that State Street's actions generated up to $500 million in profits annually for the...
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