Expert Testifies in California Ironworkers v. Loomis Sayles
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.
In trial testimony, a NERA expert identified key elements in the adviser’s selection process and matched those criteria to the securities purchased.
The trial court accepted NERA’s analysis in its opinion.