Marsh, ACE’s Unit Face Lawsuit Over Commissions
Connecticut Atty. Gen. Richard Blumenthal sued insurance brokerage Marsh & McLennan Inc. and a unit of Bermuda-based insurance firm ACE Ltd. on Friday over allegedly illegal commissions in connection with an $80-million state contract.
It was the latest in a series of actions that Blumenthal has taken since New York Atty. Gen. Eliot Spitzer filed suit in October against Marsh & McLennan for alleged bid rigging, price fixing and demanding incentive fees from insurance companies in exchange for sending property and casualty business their way.
Blumenthal’s civil lawsuit accuses Marsh & McLennan of illegally steering an $80-million state contract to ACE Financial Solutions Inc. It alleges that ACE paid Marsh a $50,000 commission for a contract that managed workers’ compensation cases.
Spokesmen for Marsh and ACE said their companies were cooperating with Blumenthal’s investigation.
Marsh & McLennan shares fell 50 cents to $31.01 on the New York Stock Exchange. ACE shares dropped 85 cents to $42.83, also on the NYSE.
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