- Recently-Settled Lawsuit to Protect Worker and Retiree Pension Benefits Addressed Years-Long Coding Error in Computer-Driven Investment System
- August 2, 2012
- Law Firm: Lieff Cabraser Heimann Bernstein LLP - San Francisco Office
We served as Co-Lead Counsel in a class action lawsuit for a class of employee retirement plans coved by the Employee Retirement Income Security Act (ERISA) and other investors in quantitative funds managed by AXA Rosenberg Group, LLC and its affiliates (“AXA”).
Plaintiffs alleged that AXA breached its fiduciary duties and violated ERISA by failing to discover a material computer error that existed in its system for years, and then failed to remedy it for months after its discovery in 2009. By the time AXA disclosed the error in 2010, investors had suffered losses and paid substantial investment management fees to AXA.
After working with experts to analyze data obtained from AXA relating to the impact of the error, we reached a $65 million settlement with AXA that the Court approved in April 2012.