Arkansas Teacher Retirement System v. State Street Corp.

Settled: Pending Court Approval

$300 million recovered from State Street in connection with FX Trades

Labaton Sucharow serves as lead counsel for the plaintiff Arkansas Teacher Retirement System (ATRS) in this class action against Boston-based financial services company, State Street Corporation (State Street). On August 8, 2016, the court preliminarily approved a $300 million settlement with State Street. The Final Approval Hearing will be on November 2, 2016 at 2:00 p.m.

The plaintiffs claim that State Street, as custodian bank to a number of public pension funds, including ATRS, was responsible for foreign exchange (FX) trading in connection with its clients' global trading. Over a period of many years, State Street systematically overcharged those pension fund clients, including Arkansas, for those FX trades. Despite actually transacting FX exchanges within the legitimately recognized “range of the day,” State Street reported to its clients exchange rates far less favorable to those clients. Due to the lack of regulation and/or commonly reported exchange rates, it was all but impossible for State Street’s public pension funds to detect this ongoing deception. 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 is also separately entering into agreements with the Department of Justice, the Securities and Exchange Commission, and the Department of Labor.

The case is Arkansas Teacher Retirement System v. State Street Corp. et al., No. 11-cv-10230 (D. Mass.). The lead plaintiff is Arkansas Teacher Retirement System. The defendant is State Street Corporation.

Final Approval

A Final Approval Hearing will be held on November 2, 2016 at 2:00 p.m. in Courtroom 10 of the John Joseph Moakley United States Court House, 1 Courthouse Way, Boston, MA 02210. The deadline for seeking exclusion from the settlement class or objecting is October 7, 2016. There is no claim process, however if you are a Group Trust or represent a Group Trust, you must submit a certification by December 20, 2016, as explained in the Notice.

If you have questions about the settlement, please contact Labaton Sucharow at or 1-888-219-6877, or contact the Claims Administrator, A.B. Data, Ltd., at 877-240-3540.