State Street Directors Hit With Shareholder Derivative Suit

Law360, New York (April 30, 2012, 8:13 PM EDT) -- A State Street Corp. shareholder launched a derivative suit Monday against current and former directors, claiming they cost the Boston-based bank billions in potential legal damages and real losses through their lack of oversight of its foreign currency exchanges and mortgage-backed securities.

Filed in Massachusetts federal court on behalf of State Street, the suit claims the board's breaches of fiduciary duty exposed the bank to billions of dollars in damages from an array of pending lawsuits and caused the company to overpay greatly when buying back...
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