Comerica Faces Class Action Over Sigma Finance

Law360, New York (October 30, 2009, 1:07 PM EDT) -- Two Michigan pension funds have filed a putative class action against Comerica Bank over its failure to pull their money out of Sigma Finance Corp. before the $27 billion structured investment vehicle collapsed last year.

In a complaint filed in the U.S. District Court for the Eastern District of Michigan on Thursday, trustees of the Birmingham and Oakland retirement funds claimed Texas-based Comerica breached its fiduciary duties by investing a substantial portion of their assets in risky debt securities issued by a Sigma subsidiary.

The funds...
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