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NU Online News Service, Nov. 13, 3:50 p.m. EST
Marsh & McLennan Companies Inc. today announced it has reached a settlement in the securities class action lawsuit filed in 2004 in the U.S. District Court for the Southern District of New York.
The securities class action settlement, which is subject to final court approval, resolves all of the claims in the litigation against MMC, Marsh and the named individuals. The suit claimed damages against investors and pension funds in Ohio and New Jersey after insurance bid-rigging allegations against Marsh.
Without admitting wrongdoing of any kind, MMC said it has agreed to pay $400 million, $205 million of which is expected to be covered by insurance. MMC said it will use cash on hand to fund the remainder of the settlement, which will be tax deductible and result in a cash refund.
Separately, the company also announced that the ERISA class action lawsuit filed in 2004 in the U.S. District Court for the Southern District of New York has been settled for $35 million, $25 million of which will be covered by insurance.
In a statement, the company said: “After more than five years of litigation, MMC believes these settlements to be in the best interest of the company and its stockholders. While the company continues to deny all of the claims in these lawsuits, the resolution of these matters puts the litigation arising from the events of 2004 largely behind us and reduces the company’s ongoing legal costs. MMC is focused on the future and further strengthening its world-class businesses.”