Neuberger Berman Settles in Revenue Sharing Case

A federal court judge has given preliminary approval to a partial settlement in a lawsuit accusing Hartford Life Insurance Co. and Neuberger Berman Management of entering into revenue sharing agreements.
An announcement on the Web site of law firm Shepherd, Finkelman, Miller & Shah, LLP, said the settlement is on behalf of all administrators of 401(k) plans, which engaged Hartford Life Insurance Company as a full-service provider and for which, at any time since November 14, 2003, Neuberger Berman has served as an investment adviser. The partial settlement provides for payment to a class of 575 administrators of $225,000, less any attorneys’ fees and costs approved by the court, according to the announcement.

The suit, filed in 2006, on behalf of Phones Plus Inc. against The Hartford Financial Services Group, Hartford Life Insurance Co., and Neuberger Berman Management alleges that the firms entered into revenue sharing agreements and arrangements with various mutual funds, and among themselves, in violation of the Employment Retirement Income Security Act (ERISA).

The law firm is in the process of identifying and notifying all class members.

More information is available here.