Massachusetts Attorney General Martha Coakley Sues Insurer For Bid-Rigging

January 04, 2008 -- BOSTON – Massachusetts Attorney General Martha Coakley’s Office filed a lawsuit in Suffolk Superior Court against Ohio-based insurer Great American Insurance Group for submitting a false insurance premium quote to a Massachusetts company. The complaint seeks relief in the form of restitution, attorneys’ fees, civil penalties, and a court order prohibiting the company from engaging further in unfair and deceptive business practices.

"Bid rigging is a very serious violation of Massachusetts law," Attorney General Coakley said. "As the documents filed along with our complaint show, we allege that Great American was a knowing participant in a scheme to defraud Analog Devices."

The complaint alleges that in 2004, at the request of insurance broker Marsh & McLennan, Great American submitted a fake and intentionally uncompetitive quote to Norwood based semi-conductor manufacturer Analog Devices. Great American submitted this fake bid to make another insurance company’s bid look competitive. In return for this favor, Marsh & McLennan steered another one of Analog Devices’ insurance policies to Great American at a pre-determined price. Insurers such as Great American paid Marsh & McLennan lucrative contingent commissions based on the volume of business Marsh & McLennan placed with them.

This matter is being handled by Assistant Attorney General Claire Masinton and Division Chief Glenn Kaplan of Attorney General Coakley’s Insurance and Financial Services Division and Division Chief Quentin Palfrey of Attorney General Coakley’s Health Care Division. Investigations Supervisor Arwen Thoman of Attorney General Martha Coakley’s Insurance & Financial Services Division is also assisting in this matter.

Source: Massachusetts Attorney General

Bookmark/Search this post with:

 •    •    •    •    •    •    •    •    •    •    •    •