Court Approves $300 Million Settlement Against State Street in Connection with FX Trades

NEW YORK (November 2, 2016) — Labaton Sucharow LLP announced today final court approval of a $300 million settlement with Boston-based financial services company, State Street Corporation (State Street). The Firm serves as lead counsel on behalf of the plaintiff Arkansas Teacher Retirement System (ATRS) in Arkansas Teacher Retirement System v. State Street Corp. et al., No. 11-cv-10230 (D. Mass.). Two other class actions alleging claims under the Employee Retirement Income Security Act of 1974 (ERISA) were consolidated into this ATRS action.

Represented by Labaton Sucharow Chairman Lawrence A. Sucharow and partners Eric J. Belfi, David J. Goldsmith, and Michael H. Rogers, ATRS alleges that State Street and certain affiliated entities misled members of the class in connection with certain foreign currency exchange (FX) trades. After surviving a motion to dismiss, review and analysis of several million pages of documents, consultation with experts, and multiple negotiation and mediation sessions, the parties came to an agreed-upon settlement. State Street also separately entered into agreements with the U.S. Department of Justice (DOJ), the U.S. Securities and Exchange Commission (SEC), and the U.S. Department of Labor (DOL) for a total of $530 million.

“We're gratified that Judge Wolf has granted final approval to this extraordinary cash settlement, and we look forward to seeing the proceeds of the settlement distributed to members of the class,” Goldsmith remarked after the settlement hearing. “We're also gratified that the court recognized the efforts of our client, the Arkansas Teacher Retirement System, which took a risk and stepped forward to right a perceived wrong."

George Hopkins, Executive Director of ATRS, stated, “The Arkansas Teacher Retirement System represents the retirement security for the educators of Arkansas. ATRS is focused on protecting the trust fund that ensures that retirement security. Labaton Sucharow is a top-notch firm that continuously impressed me during this litigation. The Firm’s team worked effectively and tirelessly to obtain quality results for the class.”

To read the previous press release on the case, click here.