Insurance giant Marsh and McLennan, rocked by a bid-rigging scandal five years ago, will pay $435 million to settle two class action suits in the case.
In 2004, then-New York Attorney General Eliot Spitzer accused the company's insurance brokerage of accepting illegal payments in exchange for placing insurance coverage with favored carriers.
The resulting scandal forced out the company's top management, and led to massive changes in the insurance industry. The class action suits--on behalf of shareholders and employees--were the last remaining litigation in the case. The company is not admitting wrongdoing, and says $225 million of the $435 million is covered by insurance.
In a statement, Marsh and McLennan says the settlements are in the best interest of the company and its shareholders, and says the company is now "focused on the future and further strengthening its world-class businesses."
The settlements are still subject to court approval.