Arthur J. Gallagher & Company said it will pay $36.85 million to settle a suit by current and former clients after accusations by state attorneys general that Gallagher and other brokerages were involved in rigging bids for commercial insurance.
The Itasca, Ill.-based insurance broker said the agreement will end its involvement as a defendant in a multidistrict class action pending against commercial carriers and brokers filed with the U.S. District Court in Newark, N.J.
The suit followed allegations from state attorneys general that insurance brokers engaged in the steering of insurance contracts to certain carriers willing to pay volume-based contingent commissions. The brokers allegedly did not reveal the relationships or payments to clients.
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