Litigation Support- Lawsuit involving breach of fiduciary duty by asset manager for a large domestic asset management firm
Assisted expert in providing expert testimony and calculated damages to pension plan. Work involved review of manager adherence to policies and procedures, fair and equitable treatment of clients, asset pricing, duty to inform, adherence to client’s written investment policy statement, prudence in portfolio management, and portfolio diversification. Additional work involved reconstructing thousands of transactions and developing proprietary software to analyze data.
Accumyn’s expert investigated and analyzed the flow of funds between a series of companies holding the ownership interests in an electrical power plant supplying one of the largest cooperatives in the United States. The Accumyn team assessed the profitability and the economic and financial implications of the ownership structure which included off-balance sheet holdings of one of the world’s former leading energy companies. Accumyn also traced profits and cash flows between entities in light of financing arrangements, option agreements and a buy-out option. Throughout the multi-stage litigation and FERC proceedings, Accumyn prepared a valuation of a power purchase agreement, financial analysis of solvency of parties to the agreement, assessment of various acquisition and disposition options based on historical financial performance of plant and holding entities and modeling to assess provisions to cure the alleged breach of contract.
Accumyn’s expert assisted in the recovery of amounts due under provisions of a credit facility agreement with a public financial institution engaged in the origination and servicing of residential mortgages in the United States. The financial institution was experiencing difficulties in 2007 due to the market downturn related to subprime mortgages. The financial institution was acquired and made private by a private equity company based in Texas, which specialized in investing in distressed companies. A provision in the credit facility agreement between the lender and the financial institution provided that the debt should have been paid off if the credit rating of the financial institution would have fallen more than one “notch”. During mediation Accumyn prepared demonstratives of the various liquidation scenarios and identified key documents that revealed how management’s misrepresentations intended to prevent the credit rating downgrade.