Gallagher has stated the case “raises serious ethical questions about the payment of a loan by a competitor to one of our employees”
The Ardonagh Group is facing legal action over how it recruited six former Gallagher energy brokers.
Gallagher is taking legal action against Ardonagh and has stated the incident raises “serious ethical questions.”
Court documents show Nevada Investments Topco, the holding company of several Ardonagh members, paid a £625,000 interest free loan to a senior energy broker at Alesco, Gallagher’s London wholesale subsidiary, according to Reinsurance.
The broker subsequently left Alesco to join the group, along with five other colleagues, between June and September 2017.
A spokesperson for Gallagher said: “Gallagher has taken legal action to protect one of its businesses against financial damage by a competitor following the resignation last summer of six employees working in Alesco.
“This case raises serious ethical questions about the payment of a loan by a competitor to one of our employees - and the failure of that employee to tell us about it - as well as the sharing of our confidential business information with other organisations in the market.”
Co-ordinated
Further reported details in the court papers show Gallagher is claiming the recruitment was part of a “co-ordinated team move” and that several accounts also transferred to Ardonagh subsidiaries following their resignations.
The loan was reportedly made to allow the broker to complete the purchase of a house, and was initially concealed by the broker on handing in his resignation.
Ardonagh chief executive David Ross (pictured) left Gallagher in 2015 to become chief executive of Towergate.
Gallagher previously accepted a settlement of £20m from Towergate after suing former Gallagher International chief executive Ross, former Gallagher International chief financial officer Mugge and mergers and acquisitions adviser Keey in March 2015.
The broker accused the trio of orchestrating a team move from Gallagher to Towergate.
Nevada Topco is a holding company and majority owner of Price Forbes, Broker Network and Autonet.
Ardonagh was contacted for a response, but declined to comment.
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