NU Online News Service, May 20, 3:50 p.m. EDT–ACE Limited reported that the legal costs sparked by investigations concerning its role in suspected contingency fee abuses have amounted to more than $40 million.
In its 10-Q filing, for the first quarter of 2005, the Hamilton, Bermuda-based insurer said it has "paid and accrued over $40 million," approximately $30 million of which was recorded in the first quarter.
In March, ACE's annual 10-K filing with the Securities and Exchange Commission reported it was being examined by prosecutors and regulators in 13 states, including New York's Attorney General Eliot Spitzer who sued Marsh & McLennan Companies in October 2004 over allegations of kickbacks and other misconduct related to the collection of insurers' incentive commissions.
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