Neuberger Berman Hit With $130M ERISA Lawsuit

Neuberger Berman Group LLC, the investment management firm formerly owned by Lehman Brothers, has been accused by a participant in its 401(k) plan of larding the plan with an in-house investment fund that carried high fees and suffered from “abysmal performance” (Bekker v. Neuberger Berman Grp. LLC, S.D.N.Y., No. 7:16-cv-06123, complaint filed 8/2/16).

In a class action complaint filed Aug. 2, Arthur Bekker argued that Neuberger’s 401(k) plan lost more than $130 million from its investment in the Value Equity Fund, an investment fund allegedly managed by Neuberger shareholder Marvin Schwartz, who is named as a defendant in ...