State Street Corp, a US-based financial services company specializing in several asset classes, has just reached a $60 million settlement following a shareholder lawsuit, which alleged the firm overcharged its clients for Forex-related services.
State Street Corp operates a trifecta of branches that caters to clients across several channels: Global Markets, Global Services and Global Advisors are all part of the firm, effectively encompassing Forex, derivatives, equities and fixed income, among others. The lawsuit accused State Street of overcharging clients and also falsifying its investments, which it deemed as ‘high quality’.
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State Street’s (NYSE:STT) shareholders claim the firm is guilty of a litany of unauthorized markups, relegated to Forex transactions worth upwards of hundreds of millions. Furthermore, they also attribute the company’s cataclysmic stock failure back in 2009 to similar fraudulent markups, which drew a lawsuit from a California attorney.
Following the stock’s collapse south of $18.00 in 2009, State Street’s shareholders have largely had little to complain about in terms of its performance. According to Forex Magnates Researchers, since a multi-year low that year, the stock has rallied nearly 280% to trade presently at $68.29 at the time of writing. It is unclear how this new lawsuit will affect share prices however, as settlement papers were filed yesterday in the Boston Federal Court.