State Street Asks Judge To Toss Forex Suit

Law360, New York (June 6, 2011, 4:28 PM EDT) -- State Street Corp. asked a Massachusetts federal judge on Friday to pull the plug on a putative class action alleging the custodian bank overcharged for foreign currency exchange transactions.

The Arkansas Teacher Retirement System filed suit in February claiming that for more than a decade, State Street gouged custodial clients by inflating exchange rates when buying foreign currency for them and reporting deflated rates when selling the currency, pocketing hundreds of millions of dollars in exploited differences. It alleges State Street's actions generated up to $500...
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