Arthur J Gallagher has agreed to resolve all claims in the Federal Multi-District class action...
Arthur J Gallagher has agreed to resolve all claims in the Federal Multi-District (MDL) class action pending in the New Jersey Federal District Court against commercial insurers and brokers relating to industry-wide contingent commission matters.
Gallagher admitted no wrongdoing, but said it chose to conclude its involvement, rather than prolong what could be a costly and burdensome lawsuit.
Gallagher will incur a pretax charge in its Q4 earnings of between $5m to $10m to increase its reserve for the incurred costs. Terms of the settlement require Gallagher to pay $28m to current and former clients and others that used a broker to purchase retail insurance from 1994 to 2005. The company will also pay $8.85m in plaintiff's attorney fees.
"We are pleased to put this legal matter behind us so we can focus all of our efforts on doing what we do best – providing our clients with high-quality, cost-effective insurance and risk management services," said J Patrick Gallagher, Jr, chairman, president and CEO.
