Cornerstone Research was retained by counsel for a family of corporate and municipal bond funds that suffered sharp declines in net asset value in the wake of the financial crisis. A family of corporate and municipal bond funds (Funds) suffered sharp declines in net asset value (NAV) in the wake of the 2008 financial crisis. Investors claimed the Funds had failed to properly disclose the excessive risks of investments made during 2006–2007 in allegedly volatile securities and derivatives, such as dirt bonds, tobacco bonds, inverse floaters, credit default swaps, and total return swaps. The Funds’ counsel initially retained Cornerstone Research to assess potential exposure, address plaintiffs’ allegations, and assist in mediation discussions. We also supported Professor John Chalmers of the

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