Anya Friedman, partner at Bernstein, Litowitz, Berger & Grossman, presented an educational briefing on securities portfolio monitoring and litigation at the Imperial County Board of Retirement meeting on April 16.

Friedman described the firm’s monitoring program, including a proprietary platform called PortfolioWatch, a team of in‑house investigators and a process for coordinating with the plan’s custodian to identify losses. She said the board’s existing securities litigation policy — which sets a $500,000 threshold for considering active litigation — guides whether the plan should remain a passive class member, seek a leadership role, or opt out and file a direct claim.

Friedman emphasized fiduciary duties and said her firm aims to minimize burdens on board staff while keeping trustees and the general counsel informed. She said monitoring is offered without upfront charges in the current relationship: Bernstein Litowitz performs surveillance and advisory work and would discuss contingency and retainer terms only if the board chooses to lead or file direct litigation.

The presentation covered global monitoring limits since the 2010 Morrison Supreme Court decision (which restricts U.S. court jurisdiction for many foreign‑listed securities), the firm’s independence from overseas referral firms, and the need to evaluate risks such as fee‑shifting in opt‑in jurisdictions. Friedman gave case examples, including a Myriad Genetics settlement of $77.5 million that she said led to wider industry changes, and large recoveries tied to bond and preferred securities litigation after the 2008 financial crisis.

Board members asked how monitoring works for passively held assets and pooled mutual funds. Friedman said losses tied to commingled mutual funds are typically recovered by the fund itself, not individual underlying investors, but separate accounts and bond holdings can still generate recoverable claims. She offered to review custodian claim filings to ensure the plan recovers what it should and to consult with the board’s general counsel on potential policy updates.

Friedman recommended the board consider whether its securities litigation policy needs modest updating as market structures and the plan’s holdings change. Trustees said they would add a governance review to an ad‑hoc committee’s scope.

No formal action was taken on the presentation; Friedman said Bernstein Litowitz will provide additional material to staff on PortfolioWatch and policy comparisons if requested.