Contested $90M State St. Bank, Pension Plan Deal OK'd

Law360, New York (October 30, 2009, 6:06 PM EDT) -- Pension plan trustees who accused State Street Bank & Trust Co. of gambling their investments on risky subprime mortgage investments have received preliminary approval of an almost $90 million settlement, despite the bank's “novel contention” that the deal might not benefit the plaintiffs.

Judge Richard J. Holwell of the U.S. District Court for the Southern District of New York signed off on the “intensely” negotiated deal Wednesday, overruling State Street's objections that ongoing talks with the U.S. Securities and Exchange Commission made it impossible to tell...
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