Investment Expert WitnessesInvestment expert witnesses are licensed and/or certified accountants, financial analysts, investment analysts, as well as other related financial professions. They are experienced with stocks, securities, and other investment options. In the news, Robert Patterson, a participant in Morgan Stanley’s retirement plan, has filed a lawsuit accusing the company of mismanaging the company’s 401(k) retirement plan.

In the U.S. District Court, New York, case 1:16-cv-06568-RJS, Patterson alleges that Morgan Stanley failed to honor their fiduciary duties.

Instead of using its sophistication and the Plan’s bargaining power to benefit participants and beneficiaries, Morgan Stanley selected and retained relatively high-cost and poor-performing investment options, some of which were managed for profit by Morgan Stanley. A prudent fiduciary at the time would have known that the investments were not suitable for the Plan. By acting to benefit themselves and contrary to their fiduciary duty, Morgan Stanley caused the Plan, and hence participants, to suffer staggering losses of hundreds of millions of dollars.

According to the complaint, the plan manages $8B. Patterson is seeking class-action certification for employees enrolled in the retirement plan from March 2010 to February 2016.

This type of litigation calls for investment expert witnesses with the experience needed to provide an unbiased opinion on performance. These experts are knowledgeable on business practices in the investment field and are experienced in testifying on the fiduciary duty of investment companies.


By Karen Olson, Over 20 years of of experience in legal research