Administration December 24, 2009

State Street to Compensate Netherlands Pension Fund

December 24, 2009 (PLANSPONSOR.com) - An Amsterdam court has ordered State Street Global Advisors Ltd. to pay 40 million euros ($58 million) in damages to Stichting Pensioenfonds OPG related to its holdings in Lehman Brothers.

Reported by

“A guarantee State Street gave to OPG has been breached as OPG, because of the administration of Lehman Brothers in England, couldn’t access capital OPG gave into management of State Street,” the Amsterdam court said in a statement posted on its Web site, according to Bloomberg. Stichting Pensioenfonds OPG is a pension fund of Utrecht, Netherlands-based Mediq NV, owner of the country’s largest pharmacy chain and previously known as OPG Groep NV. 

Spokespersons in London for State Street were not available for comment, the news report said.

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Lehman Brothers Holdings Inc. filed the biggest U.S. bankruptcy in September 2008, sparking turmoil in the financial markets. The firm’s fall led to a number of lawsuits on behalf of investors (see Reserve Primary Fund Lawsuits Consolidated), including U.S. pension funds (see Washington State Sues Lehman Execs over Investment Losses).

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