NU Online News Service, Aug. 19, 11:35 a.m. EDT
A federal appeals court has vacated the decision by a district court three years ago to dismiss antitrust and racketeering complaints against numerous insurers and brokers allegedly involved in a bid-rigging scheme with Marsh & McLennan.
The 3rd U.S. Circuit Court of Appeals in Philadelphia said it finds that plaintiffs do have grounds to go after the defendants with claims based on the alleged violations of the Sherman Antitrust Act and Racketeer Influenced and Corrupt Organizations (RICO) act.
The U.S. District Court for the District of New Jersey had ruled on several occasions that plaintiffs in the consolidated case--pertaining to claims regarding commercial and employee benefits insurance--could not use the Sherman and RICO claims because it found plaintiffs "lacked requisite factual specificity," according to the 200-page decision.
The suit is a federal action from numerous businesses, individuals, public entities, employers and employees which surfaced as a result of a 2004 investigation by New York's attorney general, who filed a civil complaint in state court against Marsh & McLennan, alleging bid-rigging for insurance contracts.
The matter is remanded to the district court for further proceedings, according to court documents.
Marsh & McLennan Companies (MMC) in March 2009 settled its involvement in the suit for more than $83.5 million.
Dozens of other insurance, reinsurance and brokerage companies remain involved in the litigation.
According to court filings, the MMC settlement awarded over 200,000 plaintiffs more than $69 million. MMC also paid more than $14.5 million in legal fees to the attorneys who represented the plaintiffs.
The brokerage firm settled the case with the New York Attorney General's Office in early 2005.
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