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Vale Joins Line of Lehman Workers Filing Compensation Claims

Sept. 12 (Bloomberg) -- Judith Vale, the Neuberger Berman LLC money manager who said top executives of Lehman Brothers Holdings Inc. should cut their bonuses, joined several other employees in filing claims against bankrupt Lehman for unpaid stock awards, overtime and other compensation.

Vale, who runs the Neuberger Berman Genesis Fund, filed a $12.3 million claim for stock awards and other compensation in U.S. Bankruptcy Court in New York last month. Joseph Gregory, Lehman’s former president and chief operating officer, filed a $233 million claim for deferred compensation in May.

Some claims, including Gregory’s, asserted they were “priority” claims, to be paid ahead of unsecured creditors. Under bankruptcy law however, no more than $11,000 in wages, salary or commissions earned six months before bankruptcy can be paid as a priority, and stock options rank at the bottom of the heap.

“Many former employees of Lehman Brothers will file normal proofs of claim related to their individual compensation prior the spin-out of Neuberger Berman as a private independent firm,” Randall Whitestone, a Neuberger Berman spokesman, said in an e-mail. Kimberly Macleod, a Lehman spokeswoman, didn’t immediately respond to e-mails or calls seeking comment.

The deadline for filing proofs of claims against Lehman, once the fourth-largest investment bank and now liquidating in bankruptcy, is Sept. 22 at 5 p.m. New York Time.

Vale wrote in a June 2008 e-mail published on the Web site of the U.S. Committee on Oversight and Government Reform that Lehman’s “top management should forgo bonuses this year.”

$10 Million Claims

Other claims topping the $10 million mark included those filed by Robert D’Alelio of Neuberger Berman seeking $12.9 million for compensation and restricted stock, and Neuberger Berman Managing Director Richard Glasebrook, who is seeking $20.1 million for compensation and stock units.

Joshua Tarnow filed a $16.5 million claim for deferred compensation and restricted stock. Brian Monahan, now at Barclays Capital Inc., filed a claim for $15.6 million for compensation including unpaid overtime and vacation as well as contributions to retirement savings. The Monahan claim may be revised before the deadline, said a person familiar with the matter.

Vale, Gregory and D’Alelio didn’t immediately return calls or e-mails seeking comment. Monahan, Glasebrook and Tarnow declined to comment.

Lehman’s headquarters and North American brokerage was bought by Britain’s Barclays Plc. Neuberger Berman money managers acquired 51 percent of the firm without putting up any cash. The rest is owned by Lehman’s creditors.

Lehman filed the biggest U.S. bankruptcy in September with assets of $639 billion and still owes creditors as much as $250 billion, Chief Executive Officer Bryan Marsal said in May.

The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

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