Following a breakdown in settlement negotiations, New York Attorney General Eliot Spitzer filed a civil lawsuit against Liberty Mutual, alleging that the carrier participated in a pervasive bid-rigging scheme with some of its top brokers.
The civil complaint–filed in State Supreme Court in Manhattan–alleges that Liberty Mutual conspired with brokers from Marsh and other intermediaries in a scheme to steer business its way in return for volume-based contingency fees.
In a statement issued hours after the suit was announced, Boston-based Liberty Mutual said it had tried to resolve the issue with the attorney general, only to find his demands “excessive and unreasonable–both in terms of magnitude and demands that would change legitimate business practices in states outside their legal jurisdictions.”
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