Insurance broker Marsh & McLennan Cos. Inc. will pay $400 million as part of a class action settlement filed five years ago by state pension plan administrators in New Jersey and Ohio in connection with a probe of the company’s acceptance of contingent commissions. The settlement has received preliminary approval by a federal judge in New York. The lead Plaintiffs in the suit – the New Jersey Division of Investment, Public Employees Retirement System of Ohio, State Teachers Retirement System of Ohio and the Ohio Bureau of Workers’ Compensation – alleged that Marsh & Mclennan broke federal securities laws by misrepresenting the nature of its contingent commission revenue.
A final approval hearing is scheduled for the 23rd of this month. The company also has announced that the ERISA class action lawsuit filed in 2004 in the U.S. District Court for the Southern District of New York was settled for $35 million, $25 million of which will be covered by insurance.
Source: Insurance Journal
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