BVM sisters sue investment firm

[RedGecko]

The Dubuque-based Sisters of Charity of the Blessed Virgin Mary have sued a Boston-based investment firm, saying they lost $1 million of their retirement money in risky investment schemes. They want their money back, plus any additional money they might have made if the funds were invested properly, said Sister Mary Ann Zollmann, president of the religious congregation known as the BVMs. The order also wants a jury trial.

But the BVMs say they aren’t suing solely for their own benefit; they hope their actions will encourage others to stand up for themselves against big investment firms.

According to the complaint, the Boston-based company promised “an actively managed fund with little investment risk.”…But State Street “significantly deviated from prudent investment decisions” and from the “investment’s original intent,” the suit claims, instead dropping the BVMs’ money into derivatives and subprime mortgages. When they realized what was happening in 2007, the sisters say, they asked State Street to take their money out of the investment vehicle, but the firm dragged its feet until the money was all gone.

thonline.com/article.cfm?id=239266

Seeking a jury trial sounds like a good move. I think jurors would be sympathetic to the nuns plight.