Plaintiffs brought a class action for equitable relief and damages based on TIAA-CREF’s alleged wrongful use of customer funds. Specifically, Plaintiffs alleged that TIAA-CREF delayed the transfer of their funds from TIAA-CREF to another mutual fund, that their funds remained invested at TIAA-CREF during this transfer delay, and that they were entitled to the increase in “their” account value during this transfer delay. Plaintiffs retained two experts to provide a methodology to estimate recoveries to Plaintiffs. Compass Lexecon’s President Professor Fischel submitted a report and testified at deposition on behalf TIAA-CREF. Professor Fischel opined that Plaintiffs’ proposed methodology was flawed and unreliable. Specifically, Professor Fischel demonstrated that the proposed methodology estimated recoveries over the wrong time period, erroneously ignored payments made previously by TIAA-CREF to compensate Plaintiffs for transfer delays, would put Plaintiffs in a better position than they would have been if TIAA- REF had processed their transfer requests on time, and would compensate Plaintiffs for risks they did not bear. The case settled on favorable terms a few weeks before trial. Professor Fischel was supported by a Compass Lexecon team led by Ralph Scholten in our Washington, D.C. office. The Compass Lexecon team worked closely with Shannon Barrett, Steve Brody, Tess Gee, and others of O’Melveny & Myers LLP.
- ERISA Litigation
- Financial Institutions & Products
- Daniel R. Fischel
- Ralph Scholten