COURT APPROVES SETTLEMENT OF BROKERAGE CLAIMS AGAINST ARTHUR GALLAGHER
The court handling the insurance brokerage antitrust litigation (see prior blog posts dated April 27, 2007 and September 14, 2006) has approved a proposed settlement with Arthur J. Gallagher & Co. and related entities. The settlement relief includes: (1) a $28 million fund to be paid to class members; (2) reform of certain alleged business practices, including prohibitions on accepting contingent compensation, “pay to play” arrangements, “bid rigging” arrangements, reinsurance leveraging, and inappropriate use of wholesale insurance brokers; (3) requirements for certain disclosures to customers; (4) implementation of specified training for Gallagher employees; and (5) payment of attorneys’ fees and costs not to exceed $8.885 million. Two objections were received to the proposed settlement, only one of which challenged the proposed settlement relief. In re Antitrust Brokerage Antitrust Litigation, Case No. 04-5184 (USDC D.N.J. Sept. 4, 2007).
