The bank is charging Marsh with breaches in fiduciary duty, also claiming it was unaware that Marsh collected interest income on M&I premiums held in fiduciary accounts before remitting them to underwriters.
Marsh previously settled bid-rigging charges for $850 million with clients who hired the company for insurance with inception dates from January 1, 2001 – December 31, 2004 (See MMC Settles ‘Shameful’ Bid-Rigging Case ). M&I hired Marsh in 1995, according to Business Insurance.
Clients had until Sept. 20, 2005, to seek compensation from the $850 million fund and waive their right to sue Marsh. Business Insurance said that about half of the 140,000 eligible clients opted to participate, including more than 90% of Marsh’s largest clients, the broker reported after the deadline passed.
The suit seeks restitution equaling the contingent commissions and interest income Marsh received on M&I’s business, along with punitive damages.