In this mutual fund litigation, defense counsel for a fund’s auditor retained Cornerstone Research.
In this mutual fund litigation, defense counsel for a fund’s auditor retained Cornerstone Research. Plaintiffs claimed that the risk of the fund’s investments, including mortgage-backed derivative securities, was not disclosed and that allegedly illiquid securities held by the fund were misvalued. Working with the expert, we analyzed the sales prices of the allegedly illiquid securities and demonstrated that the securities in the fund’s portfolio were properly valued. The expert also found that the fund’s disclosures informed investors of the risk of its investments and were consistent with the disclosure practices of other funds during the relevant time period. The case settled.
