The clients said they lost tens of millions of dollars in State Street funds that they were told were be invested in low-risk debt like Treasuries and corporate bonds. The lawsuit asserts that
One fund lost 28% of its value during the summer credit crisis, according to the lawsuit.
The number of securities lawsuits increased by 43% in 2007 to a total of 166, according to a study by the
“This is the first wave of these securities fraud suits,” said Gregory J. Hindy, a securities lawyer and partner at
Also last week,
State Street, which manages $2 trillion for pension funds and other institutions, saw its shares surge after the announcements, closing at $85.37, a record for the company.