AIG settles but ACE Chubb, Hartford and Marsh fight on
AIG will pay $9m to settle an Ohio antitrust lawsuit accusing it of conspiring with broker Marsh and insurers ACE, Chubb and Hartford, to fix commercial casualty insurance prices, Reuters reports.
Ohio Attorney General Richard Cordray had accused AIG and other insurers of conspiring with Marsh & McLennan to provide fake quotes to mislead customers into believing that competitive bidding had resulted in the best prices. He said the alleged illegal activity took place from 2001 to 2004.
"The scam in play here is yet another example of the all-consuming corporate greed that has been so prevalent on Wall Street," Cordray said in a statement.
The $9m will be distributed to 26 cities, school systems, universities and other public entities in Ohio.
No admission
AIG’s spokesman said the insurer settled to avoid the cost and uncertainty of litigation and did not admit wrongdoing.
Cordray said his case continues against other defendants. Marsh claimed it had "redressed the needs of the vast majority of our clients in Ohio" in prior litigation. The other insurers either refused or were not available to comment.
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