Summary
Arthur J. Gallagher & Co. (AJG) filed an 8-K on October 26, 2004, reporting two significant events. The company received a subpoena from the Connecticut Attorney General requesting information regarding potential violations of Connecticut antitrust laws concerning insurance bid solicitation. AJG stated its intention to cooperate fully with this investigation. In response to industry-wide allegations of bid rigging and price fixing, AJG also announced that it will cease participating as a retail broker in volume-based or profit-based contingent commission agreements starting January 1, 2005. The company has initiated an internal review with independent counsel but currently has no knowledge of any improper practices by Gallagher.
Key Highlights
- 1Received a subpoena from the Connecticut Attorney General regarding potential antitrust law violations in insurance bid solicitation.
- 2The Company intends to fully cooperate with the Connecticut Attorney General's investigation.
- 3Effective January 1, 2005, AJG will no longer participate as a retail broker in volume-based or profit-based contingent commission agreements.
- 4AJG has initiated an internal review with independent counsel in light of recent industry allegations.
- 5Management currently has no knowledge that Gallagher has engaged in any improper practices.