In a class action lawsuit against State Street Bank concerning its foreign exchange trading practices, a federal judge in Boston has given final approval to a settlement for a class represented by Zuckerman Spaeder LLP and other plaintiffs’ counsel. The $300 million settlement was first announced in July 2016. It was finally approved on Wednesday, November 2 by U.S. District Court Judge Mark L. Wolf.
The class was comprised of private and public pension plans and mutual funds that custodied their assets at State Street Bank. Zuckerman Spaeder, led by partner Carl S. Kravitz, was one of the plaintiffs’ counsel and represented the private, or Employee Retirement Income and Security Act (ERISA), plans within the class. The case alleged that the bank charged excessive fees or mark-ups in connection with the foreign currency transactions with its custodial clients (the class), and with respect to the ERISA plans in particular, violated its fiduciary duties, entered into prohibited transactions and committed other violations of ERISA.
“Following approximately five years of litigation and mediation, this is a tremendous and very satisfying outcome for our clients,” said Mr. Kravitz. “There were no objections made to this all cash settlement and no class members opted out, indicating their approval of the result. We provided real value to the class.”
The settlement also resolves related regulatory investigations by the U.S. Department of Labor, the U.S. Department of Justice and the Securities and Exchange Commission.
In addition to Mr. Kravitz, the plaintiffs were represented by Lawrence A. Sucharow of Labaton Sucharow LLP (Lead Counsel), Michael P. Thornton of Thornton Law Firm LLP, Daniel P. Chiplock and Robert Lieff of Lieff Cabraser Heimann & Bernstein LLP, J. Brian McTigue of McTigue Law LLP, and Lynn Lincoln Sarko of Keller Rohrback LLP.
About Zuckerman Spaeder LLP
Founded in 1975, Zuckerman Spaeder LLP is a national litigation boutique that represents individual and institutional clients in high-stakes civil and criminal cases. Zuckerman Spaeder counts among its ranks many of the nation’s leading lawyers, who include former federal prosecutors and public defenders, as well as attorneys who have served in congressional offices and federal agencies. The firm is frequently named to The National Law Journal's "Midsize Hot List,” and was recognized by The American Lawyer as a finalist for its "Litigation Boutique of the Year" each year it has selected firms for such distinction. Zuckerman Spaeder is also the top-listed firm for white collar criminal defense in Best Lawyers, with more attorneys recognized in that category than any other firm in the country, and in 2010 U.S. News and World Report ranked the firm in the top-tier nationally for commercial litigation. The firm’s attorneys have extensive experience in matters related to securities violations, tax controversy, political law, legal ethics, food and drug law, and health care fraud. For more information about Zuckerman Spaeder, visit www.zuckerman.com.
