Summary
Brown & Brown, Inc. (BRO) announced on March 2, 2017, that it has entered into a settlement agreement to resolve ongoing litigation with AssuredPartners, Inc. and certain employees. This agreement effectively concludes a significant legal dispute concerning alleged violations of post-employment restrictive covenants and other claims, as well as counterclaims from employees. The resolution is a positive development for the company, removing legal uncertainty and potential financial liabilities associated with the lawsuit.
Key Highlights
- 1Brown & Brown has settled all ongoing litigation with AssuredPartners, Inc. and certain employees.
- 2The settlement resolves claims related to post-employment restrictive covenants, tortious interference, and employee counterclaims.
- 3Assured Parties paid Brown & Brown $20 million as part of the settlement agreement.
- 4All claims and counterclaims in the litigation will be dismissed with prejudice.
- 5Parties involved have received full releases of all claims against each other.
- 6A six-month non-solicitation agreement is in place for all Company employees.
- 7An extended 18-month non-solicitation agreement specifically targets employees in Daytona Beach and the greater Orlando area.
Frequently Asked Questions
The litigation involved claims by Brown & Brown against AssuredPartners and certain employees for violations of post-employment restrictive covenants and tortious interference. There were also counterclaims from the Assured Parties against Brown & Brown for breach of employment agreements.
The settlement includes a payment of $20 million from the Assured Parties to Brown & Brown. This resolves potential financial liabilities and removes legal costs associated with the ongoing lawsuit.
The Assured Parties have agreed not to solicit or hire employees of Brown & Brown for a period of six months. Additionally, for 18 months, there's a more specific restriction preventing the solicitation or hiring of employees from Brown & Brown's offices located in Daytona Beach, Florida, and the greater Orlando, Florida area (including Orange and Seminole Counties).
Yes, the settlement agreement stipulates that all claims and counterclaims will be dismissed with prejudice, and all parties have received full releases of claims related to this litigation.