Following a three-year investigation, the Ohio Attorney General filed suit last week against Marsh & McLennan Companies, Inc. and four insurers, alleging violations of Ohio’s antitrust laws. The complaint contends that Marsh and the insurers conspired to eliminate competition in the market for commercial casualty insurance in Ohio during the 2001 through 2004 time period. In particular, the complaint alleges that the insurers entered into profit sharing or contingent commission agreements with Marsh, pursuant to which the insurers paid enhanced commissions to Marsh in exchange for protection from competition in the placement of new policies and renewals. The complaint contends that pursuant to this scheme, the insurers agreed to submit fictitious quotes in order to create the impression of competitive bidding when there was none. A Marsh spokesman has stated that the $850 million settlement trust established by Marsh in connection with then-Attorney General Eliot Spitzer’s lawsuit making similar allegations should preclude this suit because as part of that settlement, Marsh agreed to pay $35 million to Ohio clients.
The complaint seeks injunctive relief, disgorgement of monies generated by the alleged overcharges, treble damages, and statutory fines. Click here to review the complaint filed in this action, State of Ohio v. American International Group et al., Case Number 07-633857, filed in the Court of Common Pleas for Cuyahoga County, Ohio.
