Neuberger Berman Group LLC scored a significant victory in a lawsuit challenging its decision to keep an allegedly high-fee, underperforming affiliated fund as an investment option in its 401(k) plan.
A federal judge in New York largely dismissed the lawsuit by a plan participant, ruling against his claim of fiduciary breach under federal benefits law against Neuberger, the investment management firm formerly owned by Lehman Brothers.
The judge, however, allowed the participant to advance his claim that management fee payments to the plan constituted a prohibited transaction. This claim would only advance against the plan committee, as Neuberger convinced the ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.