Compliance November 20, 2009

Monster Employees Seek Stock-Drop Suit Settlement OK

A group of 401(k) participants is seeking court approval of a $4.25 million out-of-court settlement of a stock-drop lawsuit against their employer Monster Worldwide Inc.

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Lawyers representing the employees filed court papers in federal court in New York asking U.S. District Judge Alvin K. Hellerstein to approve the deal and the plan to distribute the money among several thousand employees who were in the company stock fund in the Monster 401(k) Savings Plan.

In the 2006 suit, the employees alleged the company breached its fiduciary responsibilities by continuing to offer the stock fund as an option even though Monster’s share price had plummeted from a high of $80 per share to a $15 low. The low price point came during a period when the Web job search company was accused of a “pervasive options-backdating scheme” (see “Ex-Monster Chief Admits to Options Backdating Allegations”).

The suit alleged that the company knew or should have known its share price was inflated.

While continuing to insist on the validity of the original accusations, the employee motion to Hellerstein admits full-blown litigation would be costly and time-consuming and that the settlement would actually serve the plaintiffs the best.  

The case is Taylor v. McKelvey, S.D.N.Y., No. 06-cv-8322 (AKH).

Deals & People November 20, 2009

Former AIG Investment Advisory Business Rebrands

PineBridge Investments is the new brand name of the former asset management and investment advisory business of American International Group, Inc. (AIG).

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PineBridge Investments will continue to offer capabilities in alternative investments, listed equity, and fixed income to institutional and individual clients. The firm said it will maintain its global footprint that currently includes operations in 32 countries, with headquarters in New York.

In September, AIG announced an agreement to sell a portion of its investment advisory and asset management business to Bridge Partners, L.P. (see “AIG Enters into Agreement to Sell Asset Management Business”).

The firm said the new brand name reflects the company’s heritage and roots on Pine Street in New York’s financial district, and the new logo represents upward growth, as well as the three asset classes—equities, fixed income and alternatives—in which the firm invests.

PineBridge Investments will be formally transitioning to the new name across its global offices and products over the next several weeks. The process is scheduled to be finalized in conjunction with the completion of the sale of the business, which is subject to regulatory approvals and other consents.

“The announcement of our new brand name is an exciting milestone, marking a significant point as we transition to being an independent business,” said Win Neuger, chief executive officer.

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