New York Attorney General Eliot Spitzer has set his sights on H&R Block ( HRB), saying the tax preparer has fraudulently marketed individual retirement accounts to its clients. A lawsuit filed against H&R Block claims the company "steered hundreds of thousands of its clients, including almost 30,000 New Yorkers, into IRAs that were virtually guaranteed to lose money because of a combination of hidden fees and low interest rates," according to a statement on the attorney general's Web site. Spitzer's office began the investigation in 2005 after receiving information from an H&R Block tax preparer, the online statement indicated. Spitzer has been in the news frequently in recent years for a number of other investigations, including probes of analysts and mutual fund firms. H&R Block, based in Kansas City, Mo., told clients that its Express IRA paid "great rates"and was "a better way to save," but 85% of those who opened accounts paid more in fees than they earned in interest, according to Spitzer's office. Shares of H&R Block were dropping $1.27, or 5.8%, to $20.73 on trading volume that was more than twice the daily average. A close below $21.58 would establish a new 52-week low for the stock.