State Street Mismanaged $80M Trust: Suit

Law360, New York (January 4, 2012, 9:35 PM EST) -- A North Carolina family on Wednesday sued State Street Bank & Trust Co. in Massachusetts for allegedly violating a custodial contract and allowing an investment company to mismanage the family’s $80 million investment portfolio.

In a complaint filed in Massachusetts federal court, members of the Szulik family, who live in Raleigh, N.C., said State Street and its predecessors breached their fiduciary duty as custodians by allowing TAG Virgin Islands Inc., which managed the portfolio, to switch funds from high-quality stable investments to risky securities.

“TAG began...
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