Reinsurance Focus

The court in the MDL action involving allegations of improper “contingent commissions” has approved a settlement with the Marsh companies, the preliminary approval of which was reported in a September 4, 2008 post. Marsh is at least the third broker to settle such allegations. The settlement provides for a $69 million fund to be distributed to class members. Marsh may use up to $5 million of the fund to resolve and settle claims of state officials representing policyholders who are potential members of the settlement class. In addition, Marsh may use up to $7 million of the fund to resolve and settle claims of individual plaintiffs in pending actions relating to the same matters that are at issue in the class action. The approved settlement is described in the court’s Memorandum Opinion. At the same time, the court issued a separate Memorandum Opinion granting class counsels’ application for an award of attorneys’ fees, reimbursement of expenses and incentive award payments. Class counsel in the federal proceedings were awarded $14.5 million; class counsel in a concurrent state court class action were awarded $4.5 million. The court entered a Final Judgment on February 17, 2009. An objector has filed a Notice of Appeal to the Third Circuit, appealing the settlement approval.

Shortly thereafter, Marsh filed a motion to enforce the final judgment and order, and to specifically enjoin the pursuit of two state court litigations by settlement class members pursuant to the Anti-Injunction Act and All Writs Act. The grounds for the motion are detailed in Marsh’s Memorandum of Law. In re Insurance Brokerage Antitrust Litigation, Case No. MDL 1663 (USDC D.N.J. Feb. 17, 2009).

This post written by Brian Perryman.