Former Employee Sues Marsh Over Compensation
Former Chief Operating Officer Roger Egan of a Marsh & McLennan Cos. Inc. unit has sued the world's largest insurance broker, alleging he was not properly compensated after being fired in the aftermath of a 2004 bid-rigging scandal.
According to a lawsuit filed Wednesday in New York State Supreme Court, Egan, 56, who is now the chief executive of insurance broker Integro Ltd., stated that Marsh refused to make payments owed to him despite saying that he was not responsible for issues raised in the scandal.
Marsh had no comment regarding the lawsuit.
In 2004, the New York Attorney General's office opened an investigation into Marsh & McLennan's business practices and later sued the company, alleging it had unlawfully collected large "contingent compensation" fees from insurers to steer business their way and had engaged in price fixing. In 2005, Marsh & McLennan agreed to pay $850 million to settle the case.
Egan was one of three employees asked to leave the company. He left in December 2004 after working for Marsh for more than 30 years, according to the complaint.
Published on July 16, 2007
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