State Street Corp., sued for losing customers’ retirement fund money with bets on mortgage-backed securities, was given preliminary court approval of its $89.8 million settlement of three class-action lawsuits.
The accord, reached June 26 with investors in bond funds managed by Boston-based State Street Bank and Trust Co., was approved yesterday on an interim basis by US District Judge Richard Holwell in New York.
In an unusual move, State Street opposed the approval, saying it might hurt the customers. The bank said investors might get a larger recovery if they wait for a possible settlement with the US Securities and Exchange Commission. The agency has been investigating the bank’s conduct since 2007.
“The ongoing SEC negotiations provide no basis for the denial or postponement of preliminary approval,’’ the judge wrote.
