Neuberger Berman Workers Score Revival of 401(k) Fund Challenge

Neuberger Berman Group LLC employees convinced a federal judge to reinstate their challenge to an affiliated, actively managed fund in their 401(k) plan.

The investment manager is accused of adding an expensive, affiliated fund to its workers’ 401(k) plan and failing to remove the fund after years of poor performance.

A federal judge dismissed the claim in 2018 after finding it was inappropriate to compare the fees of an actively managed fund to those of a passive index fund from Vanguard.

But the employees’ amended complaint gives new details showing it may have been imprudent for Neuberger Berman’s investment committee ...