This is a securities class action lawsuit against State Street Corporation
the class action lawsuit alleges State Street solicited investors to purchase shares of the SSgA Intermediate Fund by describing the SSgA Intermediate Fund's objective as one that "seeks a high level of current income while preserving principal by investing primarily in a diversified portfolio of debt securities with a dollar-weighted average maturity between three and ten years." State Street represented that the investment objective of the SSgA Intermediate Fund's was to invest "at least 80% of its total assets in debt instruments" and to invest in "debt instruments rated investment grade or better."
These statements, among others, were materially false and misleading because they omitted and/or misrepresented the true facts, including:
(a) the actual risks associated with acquiring shares of the SSgA Intermediate Fund;
(b) that the SSgA Intermediate Fund:
(i) was heavily invested in high-risk mortgage-backed securities and/or securities tied to the value of subprime mortgages; and
(ii) had vast undisclosed exposure to the subprime lending industry; and
(c) that the SSgA Intermediate Fund had materially altered its investment strategy, which had resulted in the dramatic deterioration in the quality of the SSgA Intermediate Fund's investment.
As a result of defendants' investment strategy, the SSgA Intermediate Fund suffered declines of more than 50% by September 2007.
Name (Stock Symbol)
State Street Corporation (STT)
State Street Corporation, through its subsidiaries, provides a range of financial and investment products and services for the institutional investors worldwide.
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