| Company: | Marsh & McLennan Companies, Inc. |
| Ticker Symbol: | NYSE: MMC |
| Class Period: | October 14, 1999 to October 14, 2004 |
| Date Filed: | Oct-19-04 |
| Lead Plaintiff Deadline: | Dec-13-04 |
| Court: | Southern District, NY |
| Allegations: |
A class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Marsh & McLennan Companies, Inc. (NYSE: MMC) publicly issued securities during the period between October 18, 1999 and October 14, 2004 (the "Class Period").
The complaint charges MMC, its wholly owned subsidiary Marsh, Inc. ("Marsh") and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that Marsh's representations that, in connection with its insurance operations, it always acted with its clients' best interests in mind and that it represented the interests of its clients, not the interests of insurance companies, were false. Marsh employed a business plan that required insurance companies to funnel more than a billion dollars in kickbacks to Marsh in the form of "contingent commissions." In return for these payments, Marsh rigged the bidding process, shielded complicit insurance companies from competition and deceived its customers into purchasing overpriced policies by procuring fictitious quotes from insurance companies. Defendants' practices, while profitable, misled investors and fraudulently inflated the trading price of MMC's securities. Approximately $800 million of MMC's reported $1.5 billion in net income in 2003 were attributable to the kickback payments. MMC's financial results throughout the Class Period were misleading because defendants failed to disclose that those results were only achievable by engaging in unethical and illegal business practices.
On October 14, 2004, when the extent and nature of Marsh's unethical practices were revealed, MMC's stock price dropped 25%, from $46.01 to $34.85 per share. By the end of October 15, 2004 MMC's fell to $29.20.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges MMC, its wholly owned subsidiary Marsh, Inc. ("Marsh") and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that Marsh's representations that, in connection with its insurance operations, it always acted with its clients' best interests in mind and that it represented the interests of its clients, not the interests of insurance companies, were false. Marsh employed a business plan that required insurance companies to funnel more than a billion dollars in kickbacks to Marsh in the form of "contingent commissions." In return for these payments, Marsh rigged the bidding process, shielded complicit insurance companies from competition and deceived its customers into purchasing overpriced policies by procuring fictitious quotes from insurance companies. Defendants' practices, while profitable, misled investors and fraudulently inflated the trading price of MMC's securities. Approximately $800 million of MMC's reported $1.5 billion in net income in 2003 were attributable to the kickback payments. MMC's financial results throughout the Class Period were misleading because defendants failed to disclose that those results were only achievable by engaging in unethical and illegal business practices.
On October 14, 2004, when the extent and nature of Marsh's unethical practices were revealed, MMC's stock price dropped 25%, from $46.01 to $34.85 per share. By the end of October 15, 2004 MMC's fell to $29.20.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
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