Millions of state employees across the U.S. rely on their retirement plans to deliver a sustainable retirement nest egg. It falls on the shoulders of plan administrators and investment officers to keep pace with the market and the needs of an aging workforce.
But managing multi-million and billion-dollar investment portfolios is no easy task. Public plan executives are challenged everyday by volatile markets, uncertainty, and overall randomness. An even greater risk comes from imprudent and conflicted investment advice that is often imparted by someone in whom you had placed your complete trust.
At Sanford Heisler Sharp, we understand the challenges that plan executives face. Our dedicated Financial Services Litigation team has extensive experience litigating matters that center on complex investment products, investment performance, and breaches of the twin duties of prudence and trust. We use that experience to assess whether investment managers have breached their fiduciary duty to investors and evaluate whether those aggrieved could recover damages.
So how do we do it? We start by evaluating a plan’s investment objectives, policies, and guidelines, to determine whether a recommended investment strategy complies with the plan’s governing documents. We then investigate the reasons behind the recommendation. For example, opaque products that defy easy explanation are immediately suspect. Once we confirm a poor investment strategy, we research the market for meaningful comparators and measure how the investment performed relative to their meaningful comparators.
Our approach sets us apart. Our team possesses in-depth knowledge of retirement plans from both the buy-side and investment manager points of view and is able to translate this knowledge into remedies for aggrieved investors. We litigate high stakes cases, involving hundreds of millions of dollars and affecting the lives of over a million people. Many of our cases have resulted in multi-million-dollar settlements.
If you are a plan administrator or investment officer for a public pension plan and you would like to tap the expertise of Sanford Heisler Sharp’s Financial Services Litigation team, contact us today.