MARSH SAYS 70,000 CLIENTS TOOK UP CASH IN RIGGING SETTLEMENT

Marsh & McLennan Cos., the world’s largest insurance broker, said 70,000 clients, including 90% of its biggest customers, agreed to participate in an US$850-million settlement of bid-rigging accusations. The participants will exhaust US$750-million of the settlement, which offered restitution based on the amount of business each client did with the broker, a Marsh & McLennan spokeswoman said yesterday. About 140,000 clients could have opted in, she said. The settlement resolved a lawsuit from New York Attorney General Eliot Spitzer, who accused the company of driving up clients’ insurance costs by manipulating bids and steering business to insurers that paid hidden fees. Marsh & McLennan has been counting on the settlement, which waives a client’s right to sue, to avoid future lawsuits. “ We are gratified that so many clients have elected to participate in the fund,” chief executive Michael Cherkasky said. “Completion of this stage of the process represents another important step forward for Marsh.” Marsh & McLennan, which helps companies find insurance policies, didn’t admit or deny any wrongdoing in its January settlement. Mr. Spitzer’s allegations triggered the ouster of Jeffrey Greenberg as CEO last year. The company’s shares fell US1¢ to close at US$29.65 in New York Stock Exchange composite trading. The stock is down 36 % since Mr. Spitzer sued on Oct. 14. Marsh & McLennan still faces a lawsuit from Connecticut Attorney General Richard Blumenthal, who has expanded allegations of bid-rigging in an amended lawsuit.