Bekker v. Neuberger Berman Group LLC
- Laura Swain
- 1:16-cv-06123
- U.S. District Court · Southern District of New York
- 8
In Bekker v. Neuberger Berman Group LLC, Judge Swain approved $4.76 million in fees, $41,083.58 in expenses, and $20,000 for Arthur Bekker.
The order directly affected Bailey & Glasser LLP, which received the approved attorney-fee award and expense reimbursement, Arthur Bekker, who received the $20,000 contribution award, and the ERISA settlement class whose recovery funded the fee award.
What happened
In Bekker v. Neuberger Berman Group LLC, class counsel sought payment after obtaining a $17 million settlement of Employee Retirement Income Security Act claims for 1,451 class members who generally invested in a 401(k) plan fund. Counsel requested 28% of the settlement, reimbursement of expenses, and an award for Arthur Bekker, the named plaintiff.
The court found that counsel had worked for more than four years, spent 1,386.5 hours on the case, faced substantial legal and financial risks, and achieved a meaningful result. No class member objected to the fee and expense requests.
Judge Swain approved the requested $4,760,000 attorney-fee award, $41,083.58 reimbursement for expenses, and $20,000 contribution award to Arthur Bekker.
The detailed version
- Bekker v. Neuberger Berman Group LLC · No. 1:16-cv-06123
- Laura Swain
- Dec. 1, 2020
Background
Arthur Bekker brought claims under the Employee Retirement Income Security Act (ERISA), individually, for a proposed class, and on behalf of the Neuberger Berman 401(k) plan. The case resulted in a $17 million settlement for 1,451 class members, generally consisting of plan participants who invested in the Value Equity Fund during the class period.
Bailey & Glasser LLP, serving as class counsel, asked the court to approve $4,760,000 in attorney fees, equal to 28% of the settlement; $41,083.58 in reimbursement for litigation expenses; and a $20,000 case contribution award for Bekker. Class members received notice of the requests and had an opportunity to object. None objected. The court held a hearing on November 19, 2020, addressing the settlement and the fee, expense, and contribution requests.
Attorney Fees
Under Federal Rule of Civil Procedure 23(h), a court may award reasonable attorney fees and expenses in a class action settlement. The court evaluated the request under factors used in the Second Circuit, including counsel’s time and labor, the litigation’s size and complexity, the risks of the case, the quality of representation, the requested fee compared with the settlement, and public-policy considerations.
The court found that counsel had spent 1,386.5 hours over more than four years researching, investigating, briefing, conducting discovery-related work, consulting experts, and negotiating the settlement. Counsel had incurred $41,083.58 in expenses. The court described ERISA 401(k) fiduciary-breach class actions as highly complex and noted that the case involved a risk of no recovery. It also noted that the original complaint had been dismissed and that the case was filed before a Supreme Court decision that could have affected the statute-of-limitations issue.
The court concluded that the 28% percentage-of-the-fund fee was reasonable in relation to the $17 million recovery and was below percentages approved in comparable cases. As a cross-check, the court considered the lodestar, which is the number of hours worked multiplied by reasonable hourly rates. Counsel’s $813,410 lodestar produced a multiplier of 5.85, which the court found within the range of reasonable multipliers, particularly given the risks and result.
Contribution Award and Expenses
The court found the $20,000 award to Bekker reasonable because he served as the sole class representative, participated throughout the litigation, was deposed, and put forward personal financial information in litigation against his former employer. The court also found the requested expense reimbursement fair and reasonable. The expenses included experts’ fees, travel, mediation fees, and photocopying costs—types of expenses routinely charged to paying clients.
Disposition
Judge Laura Taylor Swain ordered that the requested $4,760,000 attorney-fee award be approved. The court also ordered approval of the $41,083.58 reimbursement for outstanding costs and the $20,000 case contribution award to Arthur Bekker.
Read the full 8-page opinion on CourtListener, the free public archive maintained by the Free Law Project.