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Former Marsh Execs Accused in Bid-Rigging Scheme Sue for Bonuses

Posted on 28 Oct 2010

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Accusing March & McLennan Cos of depriving them of stock bonuses and severance, two former executives, whose criminal convictions in an insurance bid-rigging scheme were thrown out, sued their former employer.

Plaintiffs William Gilman and Edward McNenney in a lawsuite filed Wednesday said the New York-based company has wrongfully withheld the payouts after having fired them without cause in the fall of 2004.

The complaint does not specify the total damages sought, but said each plaintiff had earned several thousand restricted shares, plus severance based on their lengths of employment and prior bonus awards.

Gilman worked at Marsh for 28 years and McNenney for 14 years, the complaint said.

Marsh and a lawyer for the plaintiffs did not immediately return calls seeking comment.

In January 2005, Marsh agreed to pay $850 million to settle civil charges by then-New York Attorney General Eliot Spitzer over the alleged rigging of bids on insurance contracts.

Gilman and McNenney were each found guilty in February 2008 on one count of restraining trade, a felony antitrust charge, in connection with the case, following a 10-month bench trial. Those convictions were reversed in July 2010 after new evidence surfaced that called the convictions into question. They were among eight insurance executives, including seven from Marsh, indicted in September 2005.