MMC has agreed to pay $400m, $205m of which is expected to be covered by insurance
Marsh & McLennan Companies has reached a settlement in the securities class action lawsuit filed in 2004 in the US District Court for the Southern District of New York.
The company said that the securities class action settlement, subject to final Court approval, resolves all of the claims in the litigation against MMC, Marsh and the named individuals. Without admitting wrongdoing of any kind, MMC has agreed to pay $400m, $205m of which is expected to be covered by insurance. MMC will use cash on hand to fund the remainder of the settlement, which will be tax deductible and result in a cash refund.
Separately, the company also announced that the ERISA class action lawsuit filed in 2004 in the US District Court for the Southern District of New York has been settled for $35m, $25m of which will be covered by insurance.
Reportedly, after more than five years of litigation, MMC believes these settlements to be in the best interest of the company and its stockholders. While the company continues to deny all of the claims in these lawsuits, the resolution of these matters puts the litigation arising from the events of 2004 largely behind us and reduces the company’s ongoing legal costs.