Pensions

Judge OKs $4.2 million Northern Trust settlement with Michigan pension systems

Judge OKs $4.2 million Northern Trust settlement with Michigan pension systems

Northern Trust Corp. will pay more than $4.2 million to settle a lawsuit filed by a group that includes two Pontiac, Mich., pension systems over investment losses that occurred during the financial crisis.

The Chicago-based financial services firm violated its fiduciary and contractual duties when it "invested its clients' assets in risky, long-term investments ... that plummeted in value," the lawsuit, filed in U.S. District Court for the Northern District of Illinois, had alleged.

The settlement, approved by Judge Jorge Alonso on Wednesday, will be paid to a group of institutional investors, including a Pontiac, Mich., police and fire retirement system that was...

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