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Member, Beacon International Group, Ltd.
NEW YORK (Reuters)—California's attorney general sued State Street Corp. on Tuesday for committing an "unconscionable fraud" against the state's largest pension funds and is seeking to recover more than $200 million in alleged illegal overcharges and penalties.
The lawsuit contends that State Street Bank & Trust overcharged the California Public Employees' Retirement System, or CalPERS, and the California State Teachers' Retirement System, or CalSTRS, for the costs of executing foreign currency trades since 2001, California Attorney General Jerry Brown said in a statement.
Mr. Brown's office estimated that the overcharges exceeded $56.6 million. The lawsuit seeks to recover triple damages, civil penalties and other costs. The lawsuit was unsealed by a Sacramento Superior Court judge, Brown said.
State Street spokeswoman Hannah Grove said: "We categorically deny any allegations of wrongdoing and will defend ourselves against any litigation."
CalPERS oversees $190.4 billion of assets and manages retirement benefits for 1.6 million state workers, according to its Web site. CalSTRS oversees $126.9 billion of assets and provides retirement benefits for 833,000 public school workers, according to its Web site.
The case is California vs. State Street Corp et al., Superior Court of the State of California, County of Sacramento, No. 34-2008-00008457.