Washington, DC - Attorney General Robert J. Spagnoletti announced today he has reached an agreement with the insurance brokerage firm, Marsh & McLennan Companies, Inc. to resolve an antitrust investigation by the Government of the District of Columbia.
The agreement with Marsh allows the Attorney General to directly monitor Marsh to ensure the company is complying with national business reforms as part of a settlement reached earlier this year with New York Attorney General Eliot Spitzer. Additionally, the settlement agreement allows Mr. Spagnoletti's staff to have ready access to Marsh employees and business records which would show whether the company is adhering in the District to the promised reforms. These reforms include avoiding practices that could facilitate bid-rigging, such as requesting insurers to submit fictitious bids to clients.
The District's antitrust investigation focused on whether Marsh improperly influenced bidding by insurance companies to serve Marsh clients, thereby depriving the clients of the benefits of unfettered competition. The District of Columbia Antitrust Act, D.C. Code § 28-4502, prohibits contracts, combinations, or conspiracies in restraint of trade.
"Although the agreement does not resolve any private claims which District-based companies may have against Marsh," said Mr. Spagnoletti, "the settlement gives my office the tools it needs to determine whether Marsh clients here in DC are receiving the pro-competitive benefits of the business reforms negotiated by Attorney General Spitzer."
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