Marsh-Spitzer Settlement Struck, But MMC Woes Not OverYet

There seemed to be a sigh of relief in some circles after Marsh& McLennan Companies Inc. signed an agreement ending New York'sefforts to penalize the company for alleged bid-rigging andcontingency fee abuse, but its troubles are far from over, warnthose representing future plaintiffs.

New York-based MMC cut a deal with New York Attorney GeneralEliot Spitzer and the state insurance department to pay $850million into a restitution fund over a four-year period. The moneywill go directly to clients whose accounts earned MMC's insurancebrokerage firm, Marsh, lucrative profits via contingency fee deals.(Details of the agreement appear on page 7.)

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