Defendant Name:
State Street Bank and Trust Company
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
State Street Corporation
SIC Code:
6022
CUSIP:
85747710
Initial Case Details
Legal Case Name
SEC v. State Street Bank and Trust Company
First Document Date
04-Feb-2010
Initial Filing Format
Civil Proceeding
Case Number
10-cv-10172
Allegation Type
Securities Offering
Federal District Court
Massachusetts, District of Massachusetts
Resolutions
First Resolution Date
04-Feb-2010
Headline Total Penalty and Disgorgement
$58,350,181
Related Documents:
SEC Charges State Street For Misleading Investors About Subprime Mortgage Investments; Boston-Based Firm to Settle Charges by Repaying Fund Investors More Than $300 Million
On February 4, 2010, the SEC announced in a Press Release that it: "charged Boston-based State Street Bank and Trust Company with misleading its investors about their exposure to subprime investments while selectively disclosing more complete information to specific investors."
SEC Charges State Street for Misleading investors About Subprime Mortgage Investments
On February 4, 2010, the SEC announced in a Litigation Release that it: "filed a settled civil action charging Massachusetts-based State Street Bank and Trust Company ('State Street') with securities law violations for misleading investors during the subprime mortgage crisis in 2007 about the extent of subprime mortgage-backed securities held in certain funds under its management, and then selectively disclosing more complete information about subprime investments to certain investors."
Complaint
In the Complaint, the SEC alleged that: "During the subprime mortgage crisis in 2007, State Street engaged in a course of business that mislead investors about the extent of subprime mortgage-backed securities held in certain unregistered funds under its management. As a result of State Street's conduct, investors in State Street's funds lost hundreds of millions of dollars during the subprime market meltdown in mid-2007."
Final Judgment as to Defendant State Street Bank and Trust Company
On February 25, 2010, Federal District Judge Douglas P. Woodlock entered Final Judgment against State Street Bank and Trust Company, pursuant to the consent of the SEC and State Street Bank and Trust Company. As part of the Final Judgment, State Street's undertaking to pay $255,240,472 to injured investors takes into account a credit of $349,600,887 for payments State Street already made to injured investors including in a class action settlement in the case titled In re State Street Bank and Trust Co. ERISA Litigation, Case 07 Civ. 8488 (RJH).
