Neuberger Berman Cleared for $17 Million 401(k) Deal (Corrected)

Neuberger Berman Group’s 401(k) plan committee received court approval for a $17 million class settlement with employees and former employees who challenged the plan’s affiliated investment options, according to an order by a federal judge in Manhattan.

The deal is expected to benefit about 1,500 participants in the Neuberger 401(k) plan who invested in the Value Equity Fund, an actively managed fund that paid fees to a Neuberger subsidiary. The participants claim this fund, which has since been removed from the plan, performed poorly and charged excessive fees.

Judge Laura Taylor Swain of the U.S. District Court for the Southern ...