California Ironworkers v. Loomis, Sayles

The Situation

Several employee benefit plans sued an investment adviser over investment losses on complex mortgage-backed securities. Under the applicable ERISA standard, liability turns on the prudence of the procedure followed in making the investment decision, not the securities themselves or the resulting performance.

NERA's Role

In trial testimony, a NERA expert identified key elements in the adviser's selection process and matched those criteria to the securities purchased.

The Result

The trial court accepted NERA’s analysis in its opinion.