A consultant had told CalPERS it was paying uncompetitive rates on foreign-exchange trades before the state of California filed a lawsuit against State Street over forex pricing, The Wall Street Journal reports. In 2003, the pension fund had hired a specialist firm to review its forex rates and the poor rates and the lack of time stamps were brought to its attention then.

In October 2009, California filed a lawsuit against State Street alleging the bank secretly overcharged both Calpers and CalSTRS by over $56 million in currency trades conducted since 2001. The suit also claims the bank concealed these manipulated prices and failed to provide ‘time stamps’ on transactions, which would have allowed the funds to check the times and rates at which their deals were completed.

Click here for the story from The Wall Street Journal.