Penn. Law Firm Probes State Street Stock-Drop Case

A Bensalem, Pennsylvania, law firm has announced it is considering filing a stock-drop lawsuit against State Street Corporation with potential claims of Employee Retirement Income Security Act (ERISA) violations.

Attorney Howard G. Smith said his firm is investigating whether the State Street 401(k) Savings Plan or the Employee Stock Ownership Plan continued to invest in company stock after it was no longer prudent to do so and whether such actions represented a fiduciary breach under ERISA.

The Boston investment company has been hit with a variety of lawsuits in recent months alleging wrongdoing in several State Street operations. The cases include: