Brian Waldner v. Natixis Investment Managers, L.P., et al.

Analysis Group expert testimony played a key role in Natixis Investment Managers’ (Natixis IM’s) trial victory in an ERISA class action brought by a former employee on behalf of participants in its retirement plan. The plaintiff class alleged that Natixis IM violated its duties of loyalty and prudence under ERISA by selecting and retaining certain plan investments – including proprietary funds for which Natixis IM affiliates received management fees – and by failing to prudently monitor the plan’s fiduciaries. Following extensive litigation of the plaintiffs’ claims and a two-week bench trial, the US District Court for the District of Massachusetts ruled in favor of Natixis IM on all claims.

Three Analysis Group experts testified on issues related to both liability and damages: academic affiliate Jonathan Reuter assessed the objective prudence of the plan investment options, industry expert Kathleen Mann analyzed Natixis IM’s fiduciary process, and Managing Principal Rebecca Kirk Fair testified on a survey that assessed the choice/preference of investment options by plan participants.

The judge cited the testimony of all three experts in his opinion. Discussing the survey of plan participants conducted by Ms. Kirk Fair, which demonstrated that their fund choices and preferences were pertinent to plan design and the selection of investment options, the judge noted that “Kirk Fair’s survey is relevant to both breach and loss… [T]he survey’s evidence regarding the financial sophistication of Plan participants informs whether the Committee acted prudently in offering sophisticated investment options” and “the investment preferences of Plan participants may also bear on the selection of appropriate comparator funds.”  The court also relied on testimony from both Ms. Mann and Dr. Reuter in its determination that the inclusion of certain investment options in the plan did not violate the duty of prudence.

The experts were supported by a team led by Managing Principal Mark Egland, Principals Marnie Moore and Eric Nguyen, and Vice Presidents Andrew Stichman, Eileen Lu, Brian Thomas, Katie Williams, and Haimin Zhang.