State St. Sued Over Subprime Investment "Gamble"

By Ron Zapata

Law360, New York (October 18, 2007, 12:00 AM ET) -- State Street Bank and Trust Co. and its advisory firm have been hit with a purported class action for allegedly investing pension plan funds meant for low-risk investments into high-risk mortgage-backed securities which tanked after the subprime mortgage meltdown.

Book publisher Unisystems Inc., on behalf of all all retirement plans that invested in State Street-managed bond funds, filed the suit Monday in the U.S. District Court for the Southern District of New York alleging violations of the Employee Retirement Income Security Act of 1974. Attorneys for...
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