Fiduciary Litigation Support

Background

Security and investment complaints that include breaches of fiduciary duty resulting from imprudent diversification represents a game changing strategy in all securities matters. Our consultants can provide fiduciary litigation support.

Established Law & Experience

• If a portfolio has lost more money than it should or failed to match the risk level defined by a prudent investor strategy, then there is clear and documented legal cause. 80% of all portfolios are inadequately diversified and according to Commentary to Section 227, Restatement 3^rd of Trusts:

“Failure to diversify on a reasonable basis … to reduce uncompensated risk is … a violation of both the [fiduciary] duty of caution and the [fiduciary] duties of care and skill.”

Fact Based

•  Imprudent diversification is fact-based and can be scientifically proven with mathmatics. Even where fraud may exist, often times, it cannot be proven or effectively litigated. However, in these same situations, imprudent diversification can be measured and the amount of damage can be calculated.

• Potential Advantages: Additional advantages of proving the defendant/ fiduciary breached his/her/its fiduciary duty include:
  • Grounds for removal of fiduciary.
  • Grounds for denying payment of legal defense costs out of trust assets.
  • Grounds for imposition of fiduciary surcharges.*

Our Litigation Support Services

• Legal Diversification Assessment: we quickly and inexpensively quantify a portfolio’s diversification risk-metrics to determine if they satisfy minimum diversification standards under UPIA, or ERISA, or UPMIFA.

• Complaint Assistance: If non-compliance is determined, we assist drafting of complaint and preparation of discovery requests.

• Post-discovery Analysis: We conduct an in-depth analysis of diversification levels within the portfolio and compare them to standards established in the fiduciary statutes, the IPS, and best practices.

• Expert’s Written Report: Based on our investigation and analysis, we provide a written expert’s opinion explaining how fiduciary duty was breached due to lack of prudent diversification and, where possible, calculate the amount of estimated damages.

• Testimony: When required, we provide expert witness testimony at deposition and trial as well as a critique of opposing expert’s reports and testimony.

Pre-testimony services described above are billed in one, combined, fixed-fee invoice. Testimony services are billed separately, at hourly rates.