Marsh Cleared Of Anti-Trust Accusations

by Stewart Douglas

Story link: Marsh Cleared Of Anti-Trust Accusations

Insurance broker Marsh has this morning been cleared of anti-trust and competition related charges in the US, following the findings of Attorney General investigations into the operation’s business practices.

The giant brokerage was investigated in the US under anti-trust legislation, and eventually accused by former Attorney General Eliot Spitzer of price fixing and anti-competitive practices within its marketplace in 2004, to the detriment of the market as a whole.

Marsh were facing a class action suit for violation of the Racketeering Influence and Corrupt Organizations Act, legislation that prohibits certain business practices deemed to be corrupt and outwith the interests of the market.

However the case was rejected this morning in the court in New Jersey by Judge Garrett Brown, almost certainly ruling out the possibility of future actions over the same issues against Marsh or any of the other insurance companies under the ruling.

The court hearing analysed the nature of claims made by the former Attorney General arising from his private investigations, concluding that there had been no such practices evident to the court in the business dealings of Marsh, which has been well received by both Marsh representatives and those of the wider insurance industry this morning.

The class action was raised against Marsh and a number of other high profile insurers in relation to in-depth investigations carried out by the former Attorney General of New York into the way in which its business with clients and suppliers was conducted.

Ultimately this morning’s decision reflects a lack of substance to the accusations, which portrayed the organisations and management structure of Marsh in a bad light. The court rejected every claim made against Marsh by the federal authorities, which could otherwise have resulted in a substantial fine or worse if found to be present.