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Massachusetts State Attorney General Tom Reilly is threatening to sue Marsh & McLennan Companies Inc. if a settlement can’t be reached over allegations that the firm did not serve its insurance clients properly.

In a letter to Michael G. Cherkasky, MMC’s president and chief executive officer, dated Sept. 8, the attorney general’s office said it has reason to believe the New York-based insurance firm engaged in “unfair or deceptive acts or practices” violating the state’s consumer protection law.

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