Neuberger Faces Shareholder Suit Over Gambling Buys

Law360, New York (July 19, 2010, 3:32 PM EDT) -- An investor has sued asset management firm Neuberger Berman LLC for allegedly losing $30 million by recklessly investing in online gambling companies whose revenue depended on illegal bet-taking in the U.S.

The firm bought $43.9 million worth of shares in two gambling companies — 888 Holdings PLC and Neteller PLC — even though the companies' operations were plainly illegal, investor Benjamin M. Gamoran said in a derivative suit filed Friday in the New York County Supreme Court.

When U.S. law enforcement began a crackdown on online...
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