NY Attorney General Can Pursue Bid-Rigging Charges Against Liberty Mutual
In a New York appeals court ruling on Thursday, the New York’s attorney general can pursue bid-rigging charges against units of Liberty Mutual Group Inc., but all other claims relating to the insurer’s contingent commission agreements were thrown out.
The ruling is the latest action stemming from the May 2006 fraud and bid-rigging suit originally leveled against the Boston-based insurer by former New York Attorney General Eliot Spitzer.
In his suit, Mr. Spitzer charged that Liberty Mutual engaged in bid rigging, steering, reinsurance tying and other improper business practices as part of a broad scheme with New York-based Marsh & McLennan Cos. Inc. An amended complaint further charged the insurer with inducing producers to breach their fiduciary duties to clients.
While other insurers faced similar charges over the last several years and opted to settle with Mr. Spitzer and other state authorities, Liberty Mutual has vowed to fight.
Published on June 23, 2008
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