HOUSTON, Oct. 25, 2004 (PRIMEZONE) -- Emerson Poynter LLP, a national law firm with offices in Houston, Little Rock, and Seattle, filed a lawsuit pursuant to the Employee Retirement Income Security Act of 1974 ("ERISA") today, October 25, 2004. This action was filed in the United States District Court for the Southern District of New York, in the case styled, Laura Jordan, On Behalf of Herself and All Other persons Similarly Situated vs. Marsh & McLennan Companies, Inc., Patricia A. Agrello, and Benefits Administration Committee, Civil Action No. 04-CV-8409. This action was filed as a class action on behalf of all present and former participants of the Marsh & McLennan Companies, Inc.'s Stock Investment Plan that is subject to ERISA and that purchased or held, or permitted Plan participants to purchase or hold through such plan, equity, or debt securities issued by Marsh & McLennan Companies, Inc. ("Marsh" or the "Company") (NYSE:MMC), or any other subsidiary, including but not limited to, Marsh, Inc. or Putnam Investments, during the period October 15, 2000 through October 14, 2004, inclusive, and who suffered losses as a result of the breaches of fiduciary duty or any other violations of ERISA as alleged by plaintiff.
Plaintiff alleges that defendants, fiduciaries of the Plans, breached their duties to Plaintiff and to the other Participants in the Plans, in violation of ERISA, particularly with regard to the Plans' holdings of Marsh stock. Each of the Marsh Plans maintained significant holdings in Marsh stock and/or required Participants' investments to be held, in whole or in part, in Marsh stock. For example, in the Company's Stock Investment Plan, Participants' investments were overwhelmingly limited to Company stock, all matching funds were in Company stock, and Participants were not permitted to meaningfully diversify their investments. Where Participants were permitted to diversify, they were substantially limited to investments in funds managed by Putnam Investments, a wholly owned subsidiary of Marsh.
Plaintiff has alleged that the defendants' acts were especially egregious given the Company's business practices. In order to make customers believe that Marsh had received "bids" from various insurance companies in an attempt to get the lowest possible price and most favorable terms for the customer, Marsh allegedly "rigged" bids by asking certain insurance companies to bid higher than the company to which Marsh had already determined to steer the customer's business. Marsh's alleged "bid rigging" schemes were not only in direct conflict of interest with Marsh's customers, but were fraudulent and illegal, and have opened the Company up to massive civil and criminal liability, lost future revenues, tarnished reputation, potential inability to borrow, and potential loss of customers.
Plaintiff's complaint also alleges that defendants knew or should have known that Marsh stock was an imprudent investment alternative for the Plans due to the improper business practices at the Company and the overwhelming risk that the Plans assumed by holding Company stock in such large, concentrated amounts. Defendants are liable under ERISA to restore losses sustained by the Plans and Participants as a result of defendants' breaching their fiduciary obligations to (i) monitor the Company's administrators and to provide them with accurate information; (ii) provide complete and accurate information to the Participants; (iii) avoid conflicts of interest; and (iv) diversify Participants' investments.
Plaintiff is represented by the law firm of Emerson Poynter LLP. The Firm has substantial experience representing retirement plan participants in ERISA actions and investors in shareholder lawsuits. The firm represents thousands of employees, former employees, and Plan Participants throughout the nation in such class actions as Enron, Reliant Energy, Goodyear, Cardinal Healthcare, and ADC Telecommunications. The firm has offices in Houston, Seattle, and Little Rock, but represents retirement Plan Participants, consumers, and investors throughout the nation.
If you were a Participant in or Beneficiary of any of the Plans, specifically, the Marsh & McLennan Companies, Inc. Stock Investment Plan ("SIP" or "401(k)"), Marsh & McLennan Companies, Inc. Stock Investment Supplemental Plan ("SISP"), Marsh & McLennan Companies, Inc. Global Stock Purchase Plan ("Stock Purchase Plan"), and Marsh & McLennan Companies, Inc. U.S. Retirement Program, including the Retirement Plan, Benefit Equalization Plan, and Supplemental Retirement Plan during the period October 15, 2000 and October 14, 2004, or have any questions about the lawsuit, please contact one of the members of our team by making a toll-free call to us at 800-663-9817, or email us at epllp@emersonpoynter.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca