Leonid Falberg v. The Goldman Sachs Group, Inc., et al.

Analysis Group was retained by Sullivan & Cromwell on behalf of Goldman Sachs, a defendant in an ERISA case brought by a participant in its 401(k) plan, one of the largest in the US. The plaintiff alleged that Goldman Sachs and its investment management committee violated ERISA’s fiduciary duty requirement by belatedly removing from the plan’s investment lineup five of Goldman Sachs’ own mutual funds that had underperformed their benchmarks, and by failing to consider lower-cost investment options. The plaintiff also charged that the defendants failed to seek fee rebates that were available to other plans that invested in Goldman Sachs funds.

An Analysis Group team led by Managing Principal Michael Beauregard, Principal Eric Nguyen, and Vice Presidents Eileen Lu and Andrew Stichman supported three affiliated experts, all of whom filed reports and testified at deposition.

• Eileen Kamerick opined on the retirement committee’s fiduciary process and the extent to which it followed standard customs and practices in managing the plan’s investments.
• Russell Wermers opined on the performance of the at-issue funds.
• Kristen Willard opined on damages and class certification issues.

Referencing Ms. Kamerick’s testimony in the opinion, a judge in the US District Court for the Southern District of New York granted Goldman Sachs’ motion for summary judgment, holding that the investment committee had properly monitored and managed the plan’s investments.