Marsh & McLennan
Practice Area: Employee Benefits
Cohen Milstein Sellers & Toll PLLC Files Two ERISA Class Action Lawsuits Against Marsh & McLennan Companies, Inc.
Cohen Milstein filed two lawsuits in October 2004 on behalf of participants in the Marsh & McLennan Companies Stock Investment Plan (“The Plan”). The suits allege violations of the federal pension law (ERISA) in connection with the loss of value in Marsh & McLennan stock acquired and held by present and former employees through the Plan. The goal of these lawsuits is to restore losses in Marsh & McLennan stock suffered by the Plan and the accounts of employees in the Plan.
The lawsuits allege that the fiduciaries of the Marsh & McLennan Companies Stock Investment Plan violated their fiduciary duties by investing Plan assets in Marsh & McLennan stock from November 1, 1998 to January 31, 2004, during which time Marsh & McLennan failed to disclose harmful business practices. Specifically, Marsh failed to disclose that a substantial portion of their income was based on “contingent commissions” whereby the Company would be paid to steer business to those that paid said commission and away from those that chose not to. As a result, Marsh & McLennan’s stock may have traded at artificially inflated prices, as demonstrated by the decline in the stock price following the disclosure of these practices.
On February 9, 2005, the District Court in New York entered a pretrial order consolidating all Marsh & McLennan ERISA actions and appointing an executive committee to supervise the prosecution of these and other Marsh & McLennan ERISA cases. Cohen Milstein Sellers & Toll PLLC was appointed to the executive committee.
On April 19, 2005, the District Court in New Jersey entered an order appointing a lead counsel committee to supervise the prosecution of this case. Cohen Milstein Sellers & Toll PLLC was appointed as a member of the committee.
On June 15, 2005, Plaintiffs filed a Consolidated Amended Complaint on the actions. On December 14, 2006, Judge Shirley Wohl Kram entered an order denying the Defendants' Motion to Dismiss the Consolidated Amended Complaint. The parties are currently engaging in discovery.
On August 8, 2008, the Plaintiffs moved for to have the case certified as a class action. Plaintiffs have requested that the Court certify the following class:
- All persons, other than Defendants, who were participants in or beneficiaries of the Plan at any time between July 1, 2000 and January 31, 2005 and whose accounts included investments in MMC.
In November 2009 the parties to the action reached a proposed settlement which provided for a cash payment to the Plan of $35,000,000. On January 29, 2010 a fairness hearing was held before Judge Colleen McMahon at the conclusion of which the Court approved the settlement, certified the class for settlement purposes, awarded attorney’s fees and expenses, approved case contribution award for the three named plaintiffs and rejected the objections received. The Court also entered an Order and Final Judgment settling the action. Both orders are attached to the left under "Case Documents".
If you are a current or former employee of Marsh & McLennan Companies, Inc. or a subsidiary who acquired Marsh & McLennan stock through the Marsh & McLennan Companies Stock Investment Plan between November 1, 1998 and the present, and have any questions regarding the litigation and the settlement, please contact one of the following persons:
Marc I. Machiz, Esq.
Bruce F. Rinaldi, Esq., brinaldi@cohenmilstein.com
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W., Suite 500
Washington, D.C. 20005
Telephone: 888-240-0775 or 202-408-4600