Massachusetts v. Great American Insurance Group (Suffolk Superior Court)
State complaint alleged that in 2004, at the request of insurance broker Marsh & McLennan, Great American submitted a fake and intentionally uncompetitive quote to Norwood based semiconductor manufacturer Analog Devices. Great American submitted this fake bid to make another insurance company’s bid look competitive. In return for this favor, Marsh & McLennan steered another one of Analog Devices? insurance policies to Great American at a pre-determined price. Insurers such as Great American paid Marsh & McLennan lucrative contingent commissions based on the volume of business Marsh & McLennan placed with them. The state sought restitution, civil penalties, injunctive relief and costs. In May 2009, the case settled Under the terms of the settlement, Great American is required to pay $60,000 to Analog Devices and $116,000 to the state. The agreement also requires Great American to undertake conduct reforms aimed at preventing insurance bid rigging in excess casualty insurance. Among other
things, Great American is specifically prohibited from colluding with brokers or other insurance companies to unlawfully fix insurance prices and is required to retain certain records concerning its bidding practices.
Massachusetts v. Travelers Companies (Suffolk Superior Court)
Plaintiff states filed identical complaints and consent orders in their respective state courst. See case listings under other settling states. The complaint alleged that Travelers
participated in a bid rigging scheme in which broker Marsh & McLennan predesignated which insurance company?s bid would ?win? a particular account. To create the appearance of a competitive bidding process, Marsh would instruct certain insurers to submit inflated, intentionally uncompetitive bids. These schemes gave commercial policyholders, including large and small companies, nonprofit organizations, and public entities, the mpression that they were receiving the most competitive commercial premiums available, when they were actually being overcharged.
Additionally, Travelers was involved with a ?pay-to-play? arrangement centered on their
payment of contingent commissions, in addition to standard commissions and fees, to insurance brokers. Contingent commissions, often undisclosed to consumers, provided an incentive for brokers to steer business to the insurer who offered the most lucrative contingent commissions, often in violation of their clients? interests.
States settled for $6 million plus injunctive relief mandating disclosure of types and amounts of compensation.
Oregon v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
District of Columbia v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
Florida v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
Texas v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
State of Colorado et al v. Warner Chilcott, 1:05-cv-02182 (D.D.C.2005)
34 states filed suit alleging that Warner Chilcott entered into an illegal agreement with Barr Pharmaceuticals to raise the prices of Ovcon, an oral contraceptive. The lawsuit alleged that after Barr Pharmaceuticals publicly announced that it planned to have a generic version of Ovcon on the market by the end of the year, Warner Chilcott paid Barr Pharmaceuticals $1 million for an agreement designed to prevent Barr’s generic product from coming to market. Under the terms of the alleged agreement, once Barr received FDA approval to market generic Ovcon, Warner Chilcott had 90 days to pay Barr $19 million, after which Barr would refuse to bring the cheaper generic version to the market. The lawsuit alleged that as a result of the agreement, Warner Chilcott paid Barr a total of $20 million to keep it from marketing its generic version of Ovcon. In additon to a payment of $5.5 million, the settlement prohibits Warner Chilcott, for ten years, from entering into any agreement that would have the effect of limiting the research, development, manufacture, or sale of a generic alternative to one of its drugs. Furthermore, Warner Chilcott must provide the states notice of certain agreements it has entered into with generic manufacturers, and must continue to make its records available to the states for inspection to determine whether the company is complying with the terms of the agreement.
Connecticut, et al. v. BL Makepeace, Inc., et al., No. 79-642 (D.Conn.)
Retail vendors of architectural, engineering and drafting supplies, equipment and blueprint services settled Attorney General?s claims of price fixing and unlawful market allocation via entry of a consent decree which prohibited such conduct and payment of a monetary forfeiture.
Massachusetts v. First Group, PLC
Eleven states alleged that the merger would substantially lessen competition in numerous markets for the procurement of School Bus Services within the Plaintiff States. Settlement required divestitures of routes and depots, provision o fmaintenance services, no non-compete agreements, notice to the states of future acquisitions, and no coercion to include certain bid specifications plus $1.1 million in attorneys fees.
Texas v. Zurich American Insurance Company (In re Insurance Brokerage Antitrust Lit. (D.C. No. 04-cv-05184, D.N.J.)
Zurich settled claims involving payment of contingent commissions and submission of false bids for insurance coverage.
