In a case that offered challenges due to its size and geographic scope, Nardello & Co. was retained by a global consulting company that was the target of high-stakes litigation brought by a state government seeking more than $2 billion in damages. The state’s breach of contract suit claimed the company’s HR subsidiary used inaccurate formulas to calculate contribution guidelines for the state’s pension fund, negatively impacting the fund’s performance. The client believed the losses were due in large part to mismanagement and the corruption of state officials.
Through in-depth open source research, including reviews of state government reports, minutes of board meetings, pension reports dating to the mid-1990s, background investigations on more than 45 trustees and board members as well as confidential source inquiries, Nardello & Co. uncovered behavior, patterns and practices consistent with conflicts of interest and ethical breaches by relevant state officials.
Counsel used our work to suggest mismanagement of the fund’s assets caused by political patronage and influence peddling. The client reached a favorable settlement with the state.