With over three decades of comprehensive experience spanning investments, consulting, trust management, and regulation, Chris Tobe, CFA, CAIA, offers expert litigation support services. Specializing in complex investment and pension cases, Chris has provided expert legal consulting for over 25 cases since 2009, demonstrating his deep expertise and credibility in the field.

Areas of Expertise:

• Chris has extensive experience in a wide range of legal matters, including cases involving 401(k) and ERISA, public pensions, trusts, and state fiduciary laws.
• He brings a unique perspective as one of the few individuals holding both the CFA and CAIA credentials, with over 20 years of private sector work experience in portfolio management and investment consulting.

Expert Witness Services:

• Chris serves as an expert witness in legal proceedings, leveraging his expertise to provide insightful analysis, testimony, and support to attorneys and clients.
• He specializes in identifying undisclosed fees and risks in investments resulting from breaches of fiduciary duty, offering critical insights that strengthen legal arguments and support client interests.

Specialized Knowledge:

• With over two decades of experience in ERISA insurance-related products, including target date funds, variable annuities, index annuities, and fixed annuities, Chris brings unparalleled expertise to cases involving these complex financial instruments.
• He also possesses extensive experience in fiduciary issues related to public pension investments across various asset classes, including equity, fixed income, and alternatives, under state fiduciary laws.

Industry Experience:

• Chris’s background as an investment consultant for firms like NEPC and FEG, coupled with his tenure as VP for AEGON Transamerica, provides him with unique insights into pension plan management, asset allocation, manager selection, and product development.
• As a former trustee for the $14 billion Kentucky Retirement System and a current member of the Investment Committee of the Delta Tau Delta Foundation, Chris brings a deep understanding of fiduciary duties and governance principles to his litigation support services.

Thought Leadership and Speaking Engagements:

• Chris is a recognized thought leader in the investment industry, having authored books, articles, and comments on fiduciary rules, pension management, performance standards, consultant evaluation, and other relevant topics.
• He has been a featured speaker at major national conferences, sharing his expertise on asset allocation, target date funds, index funds, social investing, and other critical investment-related subjects.

Chris Tobe’s extensive industry experience, specialized knowledge, and track record of success make him a trusted partner for attorneys and clients seeking expert litigation support in complex investment and pension cases. His dedication to uncovering hidden risks and advocating for fiduciary responsibility ensures the best possible outcome for his clients in legal proceedings.

Chris Tobe’s expert litigation support services are tailored to the needs and resources of attorneys and law firms. Chris collaborates with legal professionals on cases involving specialized areas such as stable value and target date funds, as well as broader litigation support for firms of varying sizes. Here’s how he works with attorneys:

Large Firms and Specialized Areas:

• For larger firms handling complex cases, Chris focuses on specialized areas like stable value and target date funds with insurance-related investments. His hourly rate for this level of expertise is $685.
• He brings extensive knowledge and experience to these cases, offering valuable insights and analysis to support the legal team’s strategy and arguments.

Small to Mid-Size Firms:

• Chris also collaborates with small to mid-size firms, helping them identify potential cases and providing litigation support from inception to resolution. His hourly rate for this level of service is $485.
• He assists these firms in finding cases that may have been overlooked by larger national plaintiff firms, offering his expertise to craft compelling complaints and discovery requests.

Regional Employment Law-Oriented Firms:

• Recently, Chris has been engaged by smaller regional firms, particularly those focused on employment law, to assist in finding and developing cases against firms in their region. These firms typically handle cases with settlements ranging from $1 million to $3 million.
• Chris helps these firms identify potential cases, draft complaints, and formulate discovery questions aimed at achieving quick settlements. He typically charges a $5,000 retainer/flat fee to begin the case finding process, followed by his hourly rate of $485 once a plaintiff is signed.

Collaborative Approach:

• Chris works closely with attorneys, providing lists of potential cases and assisting in narrowing down options based on merit and plaintiff availability.
• Once a case is selected, Chris charges hourly fees for his services, with typical expert fees ranging from $10,000 to $20,000 per case, depending on the level of involvement required.

Chris Tobe’s collaborative and results-oriented approach to expert litigation support ensures that attorneys and law firms receive tailored assistance to navigate complex cases effectively and achieve favorable outcomes for their clients.

The landscape of 401(k) litigation is undergoing significant shifts, with implications for both large and small plans, as well as legal practitioners specializing in this area. Let’s explore the current state of the market.

Size and Worth of 401(k) Plans:

• While the majority of 401(k) plans are small and may not be considered worthwhile for litigation at present, the top 1% of plans, totaling over 4,000 plans with assets exceeding $200 million, present lucrative opportunities.
• These larger plans typically serve organizations with over 500 employees, making them prime targets for litigation due to their substantial assets and potentially high impact on participants.

Market Dynamics:

• The focus of big plaintiff firms tends to be on the top 1,000 plans, leaving approximately 3,000 plans for smaller firms to consider. Of these, an estimated 2,000 plans could potentially warrant litigation.
• A recent 8-0 victory in the Supreme Court regarding ERISA plaintiffs, notably the Hughes vs. Northwestern case, has paved the way for increased litigation in the 401(k) space.

Impact of Supreme Court Ruling:

• The Supreme Court ruling has made it easier for plaintiffs to overcome the motion to dismiss stage, significantly enhancing their ability to proceed with cases.
• This shift has led to a heightened emphasis on fiduciary breaches, particularly concerning share class violations, which are prevalent in smaller plans.

Key Areas of Litigation Focus:

1. Fiduciary Breaches: Plaintiffs are actively seeking cases involving clear fiduciary breaches, with a high likelihood of quick settlements once discovered.
2. Share Class Violations: While large cases may have fewer instances, smaller plans, particularly those under $500 million, often exhibit a significant number of share class violations, providing opportunities for litigation and potential settlements.
3. Lower Cost Funds and Higher Administrative Costs: The prevalence of lower-cost funds in larger plans contrasts with the higher administrative costs seen in smaller plans. Litigation may focus on demonstrating breaches related to fund selection and administrative expenses.

Opportunities and Challenges:

• The current market presents opportunities for legal practitioners to identify potential cases and pursue litigation on behalf of participants.
• However, proving damages and breaches, particularly in cases involving higher administrative costs, can present challenges and require thorough investigation and evidence gathering.

In summary, the 401(k) litigation market is experiencing a period of transition, with increased focus on fiduciary breaches and share class violations, driven by recent legal developments and a growing awareness of participant rights. Legal practitioners must navigate these dynamics carefully to leverage opportunities and address challenges effectively in pursuit of favorable outcomes for participants.

For more information:

Contact Chris Tobe, CFA, CAIA
502-648-1303 chris@hackett-group.com

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