Ohio University will receive more than $72,000 from an April 7 settlement with American International Group after Ohio's attorney general prosecuted the company for violating the state's antitrust laws.
Attorney General Richard Cordray says AIG conspired with insurance broker Marsh & McLennan along with several other insurance companies to eliminate competition for commercial casualty insurance, which protects businesses. The companies worked together to give fake rate quotes, according to a news release from Cordray's office.
AIG denies the attorney general's claims.
We have settled to avoid the expense and uncertainty of protracted litigation concerning events from 2004 and earlier. This will allow us to continue to focus on strengthening our businesses and repaying the American taxpayer
according to a statement provided by an AIG spokesman.
Along with OU, 26 other public entities in Ohio will receive money from the settlement. Each entity will receive 10 percent of what they paid in insurance premiums through Marsh & McLennan from 2001 to 2004. About $7 million of the $9 million settlement will go to the 26 agencies and the rest of the money will pay for antitrust enforcement as well as litigation and investigation costs, according to the release.
Ohio's former attorney general, Mark Dann, filed a complaint against AIG in the Cuyahoga County Common Pleas Court in 2007, after he had investigated the company, said Kim Kowalski, a spokeswoman for Cordray's office. Cordray took over the case when he came into office in 2008.
Cordray's office will continue to prosecute Marsh & McLennan, ACE American Insurance Company and The Chubb Corporation and Hartford Financial Services Group, according to the release.
An OU spokeswoman referred The Post to Cordray's office for a comment. 1
News
Gail Burkhardt
