Compass Lexecon was retained on behalf of JP Morgan Investment Management (JPMIM) in two cases brought by AMBAC and Assured Guaranty alleging gross negligence and breaches of contract related to investment decisions for assets in two triple X securitizations providing reserves for life insurance. Plaintiffs insured the payments on notes issued by the securitizations, and the assets were invested largely in mortgage-backed securities, which subsequently declined in value during the financial crisis. Compass Lexecon expert Professor Allen Ferrell opined on the lack of foreseeability of the declines in value of the assets, and Compass Lexecon expert Professor Kenneth Lehn opined on the flaws in the Plaintiffs’ expert’s models. We worked with counsel for JPMIM from Paul, Weiss, Rifkind, Wharton & Garrison LLP including Daniel Levi, Jeff Recher, Evan Kubota and Emily Weissler. The team supporting Professor Ferrell was headed by Elisabeth Browne and included Peter Clayburgh and James Tam. The team supporting Professor Lehn was headed by David Gross and included Neal Lenhoff, Hans-Jürgen Petersen and Laura Yergesheva. The cases settled during trial for a fraction of Plaintiffs’ damages estimates.