Berman DeValerio Files Class Action Lawsuit on Behalf of State Street Investors

The law firm of Berman DeValerio announced today that it has filed a class action lawsuit against State Street Corporation (NYSE: STT) (“State Street” or the “Company”) alleging violations of the federal securities laws.

Berman DeValerio (www.bermandevalerio.com) filed the complaint on January 15, 2010 in the United States District Court for the District of Massachusetts on behalf of those who purchased State Street’s publicly traded securities between October 17, 2006 and October 19, 2009, inclusive (the “Class Period”). The complaint was also filed on behalf of investors who purchased State Street’s common stock pursuant and/or traceable to a June 3, 2008 registered public offering (the “Offering”).

The complaint alleges that State Street misrepresented its financial condition, including the Company’s exposure to billions of dollars in losses and the fraudulent inflation of the Company’s trading revenues. The action seeks to recover losses under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 (the “Securities Act”); and under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder by the United States Securities and Exchange Commission (the “SEC”). The case was filed as a related action to Hill v. State Street Corporation, et al., No. 09-cv-12146 (“Hill”), which is presently pending before the Honorable Nancy Gertner. Pursuant to the notice published on December 19, 2009 in connection with the filing of the Hill action pursuant to the Private Securities Litigation Reform Act of 1995, investors wishing to serve as the Lead Plaintiff are required to file a motion for appointment as Lead Plaintiff by no later than February 17, 2010.

According to the complaint, State Street—despite its longtime self-portrayal as a conservative bank dedicated to protecting the interests of its institutional clients—took on significant undisclosed risks and failed to disclose losses when those risks materialized, misleading investors about the Company’s exposure to billions of dollars in losses arising from off-balance-sheet conduits, the Company’s securities lending program and its own investment portfolio. Instead of disclosing these mounting problems, the complaint alleges, State Street sought to shore up its capital position by issuing materially false and misleading materials, filed with the SEC, that enabled the company to raise approximately $2.8 billion in the June 2008 Offering.

When the problems finally came to light, the value of State Street securities plummeted, wiping out $9 billion in market capitalization in a single day. Specifically, when State Street disclosed massive losses and additional risks after the close of the markets on Friday, January 16, 2009, the Company’s stock fell from a close of $36.35 per share on January 16, 2009 to close at $14.89 per share the next trading day, January 20, 2009. Furthermore, the complaint says, State Street stock fell another $4.41 per share when it was disclosed in October 2009 that the Company had been systematically overcharging its institutional clients for almost a decade through an illegal scheme involving foreign currency trades.

To receive a copy of the complaint, please call Berman DeValerio at (617) 542-8300 or click here.

If you are a member of the Class or acquired shares pursuant to the Offering, you may, no later than February 17, 2010, request that the Court appoint you as Lead Plaintiff for the class. You may contact the attorneys at Berman DeValerio to discuss your rights and interests in the case, or you may submit information online by clicking here. Please note: You may also retain counsel of your choice and need not take any action at this time to be a class member.

Berman DeValerio is a national law firm representing plaintiffs in lawsuits against corporate wrongdoers, chiefly for violations of securities and antitrust laws. The firm has 39 lawyers in Boston, San Francisco and Palm Beach Gardens, Florida.

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