State Street to Pay $530M in Foreign Exchange Fee Deal

Law360
July 26, 2016

Lawrence A. Sucharow comments on latest settlement involving worldwide financial services holding company


State Street announced that it would settle to resolve federal and proposed class claims that it overcharged customers on foreign exchange transactions, resolving a long-running investigation into those practices. The settlement is a combination of a $300 million recovery for the class, led by Labaton Sucharow as lead counsel, as well as separate settlements with the DOJ and the SEC, totaling a $530 million payout from State Street. The class action, led by lead plaintiff Arkansas Teachers Retirement System, alleged that State Street improperly allowed traders to mark up and mark down foreign currency trades in a way that benefited the Boston-based custody bank's bottom line to the detriment of investors. 

Lawrence A. Sucharow, Chairman of Labaton Sucharow said, “We believe $300 million is an excellent result for the class. After years of contested litigation and failed mediation and negotiations, this extraordinary settlement could not have been accomplished without good faith on both sides.”