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Securities
Negligence
Breach of Fiduciary Duty

In re: AXA Rosenberg Investor Litigation

Published: Jun. 2, 2012 | Result Date: Nov. 2, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 3:2011-cv-00536 Settlement –  $65,000,000

Court

USDC Northern


Attorneys

Plaintiff

Benjamin Galdston
(Bernstein Litowitz Berger & Grossmann LLP)

Kelly M. Dermody
(Lieff, Cabraser, Heimann & Bernstein LLP)

Alison M. Stocking

Rachel Geman
(Lieff, Cabraser, Heiman & Bernstein LLP)

Steven E. Fineman
(Lieff, Cabraser, Heimann & Bernstein LLP)

Paul M. Jonna
(LiMandri & Jonna LLP)

David R. Kaplan
(Saxena White PA)

Blair Nicholas


Defendant

Rees F. Morgan

Lee H. Rubin
(Mayer Brown LLP)

Jeremiah J. Burke

Catherine Moreno

Steven M. Schatz
(Wilson, Sonsini, Goodrich & Rosati)

Jonathan R. Bass
(Coblentz, Patch, Duffy & Bass LLP)

Susan K. Jamison

Rena Su-Ling Chng

Bryan Ketroser
(Alto Litigation)


Facts

AXA Rosenberg, founded by Barr Rosenberg, is a quantitative investment advisory firm.

Contentions

PLAINTIFF'S CONTENTIONS:
This class action asserts claims for breach of fiduciary duty, negligence, violations of the ERISA Act, and other claims against AXA Rosenberg Group LLC and other defendants arising out of a "coding error" in AXA Rosenberg's computerized quantitative investment model between 2007 and 2009, and the Defendants' response to the error upon its discovery. Plaintiffs alleged that the "coding error" effectively impaired AXA Rosenberg's computerized investment model and exposed client portfolios to excessive risk.

DEFENDANT'S CONTENTIONS:
AXA and Rosenberg denied any wrongdoing.

Result

The parties reached a settlement for $65 million.


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