NEW CINGULAR WIRELESS HEADQUARTERS, LLC v. ACE AMERICAN INSURANCE CO. et al Complaint

8/7/2019 NEW CINGULAR WIRELESS HEADQUARTERS, LLC v. ACE AMERICAN INSURANCE CO. et al Complaint

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I N THE UNITEDSTATES DISTRICT COURTFORTHE NORTHERN DIS TRICT OF GEORGIA A p p o 4 z o o s

ATLANTA DIVI S ION

MARSH & McLENNAN COMPANIES,INC ., MARSH INC ., ANN CORPORATION,

AMERICAN INTERNATIONAL GROUPINC., AMERICAN INTERNATIONALSPECIALTY LINES IC, AMERICAN HOMEASSURANCE CO., ILLINOIS NATIONALINSURANCE CO., INS URANCE CO . O FTHE STAT E OF PA, STAR K EXCESS

LIABILITY INSURANCEINTERNATIONAL LIMITED, LEXINGTONINSURANCE COMPANY, NATIONAL

O R I G I N A L

F I L E DI N C C L R f t 'S ~~~

U. S . ~ .C . A t l a n t a

NEW CINGULAR WIRELESSHEADQUARTERS, LLC, as successor in

-interest to AT&T WIRELESS SERVICES,

: [ N C . ; TYSON FOODS, INC . ; TYSON

FRESH MEAT, INC . ; TYSON

:INTERNATIONALCO. , L T D . ;FOODBRANDS AMERICA, INC . ; EXELON(_'ORPOR.ATIQN; UNICOM CORP . ;EXELON GENERATION COMPANY, LLC ;COMMONWEALTH EDISON CO . ; PECOENERGY COMPANY; AMERGENENERGY COMPANY LLC; PUBLICSERVICE ENTERPRISE GROUP; PUBLICSERVICE ELECTRIC & GAS CO. , I N C . ;PSEG RESOURCES, INC . ; TEXAS

INDEPENDENT ENERGY, LLP; and TEXASINDEPENDENT ENERGY OPERATINGCO. , L L C .

P l a i n t i f f s ,

V.

LUTHER. C l

Depwv a e

1 ~

Case 1:06-cv-00796-BBM Document 1-1 Filed 04/04/2006 Page Case 2:06-cv-05120-GEB -PS Document 32-1 Filed 11/10/06 Page 1 of 44


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B UNION FIRE INSURANCE CO. OF PA ,ACE LTD. , ACE AMERICAN INSURANCECO. , ACE BERMUDA INSURANCECOMPANY , LTD. , ACE USA, ILLINOISUNION INSURANCE CO., PACIFICEMPLOYERS INSURANCE COMPANY ,THE CHUBB INSURANCECORPORATION, FEDERAL INSURANCECO . , CNA FINANCIAL CORP . , THECONTINENTALINSURANCE CO . ,CONTINENTAL CASUALTY CO . ,HARTFORD FINANCIALSERVICESGROUP INC . , TWIN CITY FIREINSURANCE CO . , NUTMEG INSURANCECO . , S T. PAUL TRAVELERS CO . , INC . ,TRAVELERS INDEMNITY COMPANY,TRAVELERS CASUALTY & SURETY CO.OF AMERICA, GULF INSURANCE CO. ,ST . PAUL MERCURY INSURANCE CO . ,TRAVELERS EXCESS & SURPLUSINSURANCE, THE TRAVELERSINDEMNITY OF AMERICA, TRAVELERSPROPERTY CASUALTY INSURANCE CO . ,ST. PAUL FIRE & MAR INS URANCE CO . ,ZURICH AMERICAN INSURANCE CO . .AMERICAN GUARANTY ANDLIABILITY, ZURICH AMERICAN OF

ILLINOIS, ZURICH SPECIALTIES

LONDON LIMITED, EMPIRE FIRE &

MARINE INSURANCE CO ., FIDELITY &DEPOSIT COMPANY OF MARYLAND, XLCAPITAL LTD., XL INSURANCECOMPANY LTD., XL INSURANCEAMERICA, INC., XL SPECIALTY

INSURANCE COMPANY, GREENWICHINSURANCE CO., FIREMAN'S FUNDINSURANCE CO., NATIONAL SURETYCORP., LIBERTY MUTUAL HOLDING



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COMPANY, INC ., LIBERTY MUTUALINSURANCE CO., EMPLOYERSINSURANCE OF WAUSAU, GREATAMERICAN ASSURANCE CO., LIMITED,AMERICAN PROTECTION INSURANCECO., AWA HOLDINGS, ALLIED WORLDASSURANCE COMPANY, AMERICANALTERNATIVE INSURANCECORPORATION, ARCH CAPITAL GROUP,ARCH INSURANCE COMPANY, ARCHREINSURANCE LIMITED, ARCHSPECIALTY INSURANCE CO., ARCHINSURANCE (BERMUDA) LTD . ,COMMONWEALTH INSURANCECOMPANY, EMPLOYERS REINSURANCECORP., ENDURANCE SPECIALTYINSURANCE LIMITED, ESSEX

INSURANCE COMPANY (DE), HCCINSURANCE HOLDINGS, HOUSTONCASUALTY COMPANY, LIBERTYINSURANCE UNDERWRITERS INC . ,CERTAIN UNDERWRITERS AT LLOYD'S,LONDON including Syndicates Nos . 0 0 3 3

HIS, 0 0 7 9 PJG, 0190 FRW, 0282 LSM, 0318

N[SP, 043 5 FDY, 0588 NKB, 0623 AFB, 0861

NJM, 1003 SJC, 1096 RAS, 1 183 TAL, 1200

ROC, 1209 MEB, 12 0 9 XL, 1211 SPL, 1225

AES, 1243 EUL, 1414 RTH, 1511 MEP, 2000

HAR, 2001 AML, 2003 SJC, 2020 WEL, 2027

COX, 2488 AGM, 279 1 MAP, 232 3 NLU,

2623 AFB, 30 00 MKL, 500 0 SPL, ROYAL &

S UN ALLIANCE, MARINE INSURANCECOMPANY LIMITED,WTJERTTEMBERGISCHEVERSICHERRUNGS A.G., CIGNAHEALTH CARE, AETNA,INC., FACTORYMUTUAL INSURANCE CO . ,LUMBERMENS MUTUAL CASUALTY,



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MAX RE LIMITED, HARTFORD STEAM )BOILER I &I Co., and NAVIGATORS )

GROUP INC.Defendants. )

COMPLAINT

P l a i n t i f f s N e w C i n g u l a r W i r e l e s s H e a d q u a r t e r s , L L C ( " N e w

C i n g ul a r " ) , a s s u cc e s s o r i n i n t e r e s t t o A T& T Wi r e l e s s S e r v i c e s , I n c . ("AT&T

W i r e l e s s " ) ; T y s o n F o o d s , i n c . , o n i t s o w n a c c o un t a n d a s s u c c e s s o r i n i n t e r e s t t o

i b p , i n c . , Ty s o n F r e s h M e a t , I n c . , T ys o n I n t e r n a t i o n a l C o . , L t d . , F o o db r a n d s

A m e r i c a , I n c . ( "F o od b r a n d s ") ( co l l e c t i v e l y "T y s o n " ) ; E x e l o n C o r p o r a t i o n , U n i c o r n

Corp., Exel on Generation Company, LLC, Comm onwealth Edison Co . , PECO

Energy Company ; AmerGen Energy Company, LLC ("AmerGen") (collectiv ely

"Exelon") ; P u b l i c S e r v i c e E n t e r p r i s e G r o up , P u b l i c S e r v i c e s E l e c t r i c & G a s C o . ,

Inc ., PSEG Resour ces, Inc . , ( c o l l e c t i v e l y " P S E G " ) ; and Texas Independent

Energy, LLP, Texas Independent Energ y Operating Co . , L LC ( co l l e c t i v e l y " T I E " )

( co l l e c t i v e l y , " P l a i n t i f f s " ) ; b y a n d t h r o ug h t h e i r a t t o r n e y s , c o mp l a i n a g a i n s t

D e f e n d a n t s M a r s h & M c L e n n a n C o m p a n i e s , I n c . , M a r s h I n c . , A o n C o r p o r a t i o n ,

A m e r i c a n I n t e r n a t i o n a l G r o u p I n c . , Am e r i c a n I n t e r n a t i o n a l S p e c i a l t y L i n e s I C ,

Amer ican Home Assurance Co . , I l l i n o i s N a t i o n a l I n s u r a n c e C o . , I n s u r a n c e C o . o f

t h e S t a t e o f P A , S t a r r E x c e s s L i a b i l i t y I n s u r a n c e I n t e r n a t i o n a l L i m i t e d , Le x i n g t o n



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C o m p a n y , A r c h R e i n s u r a n c e L i m i t e d , A r c h S p e c i a l t y I n s u r a n c e C o . , A r c h

I - 1 1 s u r a n c e ( B e r m u da ) L t d., Commonwealth Insurance Company, Employers

Reinsurance Corp ., Endurance Specialty Insurance Limited, Essex Insurance

Company (DE), HCC Insurance Hol dings, Houston Casualty Company, Liber ty

I n s u r a n c e U n d e r w r i t e r s I n c . , C e r t a i n U n d e r w r i t e r s a t L l o y d ' s , L o n do n i n c l u d i n g

syndicates Nos . 0033 HIS, 0079 PJG, 0190 FRW, 0282 LSM, 031 8 MSP, 0435

FDY, 0588 NKB, 0623 AFB, 0861 NJM, 1003 SJC, 1096 RAS, 1183 TAL, 1200

ROC, 1209 MEB, 1209 XL, 1211 SPL, 1225 AES, 1243 EUL, 1414 RTH, 1511

MEP, 2000 HAR, 2001 AML, 2003 SAC, 2020 WEL, 2027 COX, 2488 AGM,

2791 MAP, 2323 NLU, 2623 AFB, 3000 MKL, 5000 S P L ( c o l l e c t i v e l y " C e r t a i n

Underwriters at Lloyds, London"), Royal & Sun Alliance, Marine Insurance

Company Limited, Wuerttemb ergische Versicher rungs A . G . , Ci g n a H e a l t h C a r e ,

Aetna, Inc ., Factor y Mutual Insurance Co ., Lumberm ans Mutual Casualty, Max Re

] L i m i t e d , H a r t f o r d S t e a m B o i l e r I & I C o . , Na v i g a t o r s G r o u p I n c . , a s f o l l o w s :

NATURE OFACTION

1 . T h i s i s a n a c t i o n b y P l a i n t i f f s , c o r p o r a t e i n s u r e d s , a g a i n s t

D e f e n d a n t s , P l a i n t i f f s ' i n s u r a n c e b r o k e r s a n d t h e n a m e d i n s u r e r s , f o r a c t u a l , t r e b l e ,

a n d p u n i t i v e d a m a g e s , di s g o r g e me n t , r e s t i t u t i o n , o t h e r i n j u n c t i v e a n d e qu i t a b l e

r e l i e f , a n d a t t o r n e y s ' f e e s a n d co s t s f o r D e f e n d a n t s ' ( 1 ) v i o l a t i o n s o f t h e S h e r m a n



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A c t , (2 ) vi o l a t i o n s o f S e c t i o n 1 9 6 2 ( c ) of R I C O , ( 3 ) v i o l a t i o n s o f S e c t i o n 1 9 6 2 ( d ) of

R I C O , (4 ) b r e a c h o f f i d u c i a r y d u t y , (5 ) i n d u c e m e n t t o b r e a c h f i d u c i a r y d u t y , (6 )

u n j u s t e n r i c h m e n t , ( 7 ) c o n s u m e r f r a u d , a n d ( 8 ) f r a u d .

2 . T h e c o n d u c t f o r m i n g t h e b a s i s o f t h i s c o m p l a i n t i n v o l v e s t h e

D e f e n d a n t s ' u s e o f a v a r i e t y o f i l l e g a l s c h e m e s a n d p r a c t i c e s d e s i g n e d t o , a m o n g

o t h e r t h i n g s , a l l o c a t e c us t o m e r s , r i g b i d s f o r i n s u r a n c e p r o d u ct s , a n d r a i s e t h e

p r i c e s o f i n s u r a n c e p r o d uc t s p a i d b y P l a i n t i f f s f o r i n s u r a n c e p r o d uc t s ( c ol l e c t i v e l y

t h e " I l l e g a l S c h e m e " ) . I n a d di t i o n , t h e b r o k e r D e f e n d a n t s ( a s d e f i n e d he r e i n )

s t e e r e d p o l i c y ho l d e r s ' b u s i n e s s t o p r e f e r r e d I n s u r e r D e f e n d a n t s ( a s d e f i n e d h e r e i n ) .

Th e B r o k e r D e f e n d a n t s w e r e i n d uc e d t o e n g a ge i n t h i s p r a c t i c e b e c a u s e t h e I n s u r e r

] D e f e n d a n t s p a i d s ub s t a n t i a l s u ms o f m on e y t o s t e e r b u s i n e s s t o t h a t i n s u r e r o r

r e f r a i n f r o m m ov i n g t h e p ol i c y h o l d e r s ' b us i n e s s t o o t h e r i n s u r e r s . Th e n e t r e s u l t o f

t h e s e p r a c t i c e s i s t h a t c o m p e t i t i o n f o r p o l i c y h o l d e r s ' b u s i n e s s d i d n o t o c c u r , a n d

p o l i c y h ol d e r s , i n c l u d i n g P l a i n t i f f s , i n t u r n , e i t h e r p a i d m or e f o r i n s u r a n c e p r o du ct s

o r r e c e i v e d l e s s b e n e f i c i a l t e r m s t h a n t h e c o m p e t i t i v e , n o n - r i g g e d m a r k e t w o ul d

h a v e c h a r g e d .



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PARTIES

3 . Plaintif f New Cingular Wir eless Headquar ter s, LLC ("New

C i n g u l a r " ) i s a D e l a w a r e l i m i t e d l i a b i l i t y c o m p a n y w i t h i t s p r i n c i p a l p l a c e o f .

b u s i n e s s i n G e o r g i a .

4 . P l a i n t i f f N e w C i n g u l a r i s t h e s u c c e s s o r i n i n t e r e s t b y m e r g e r t o

AT&T Wireless Serv ices, Inc . ("AT&T Wireless") .

5 . P l a i n t i f f A T & T Wi r e l e s s w a s , a t a l l r e l e v a n t t i m e s , a D e l a w a r e

c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n W a s h i n g t o n .

6. Plaintiff Tyson Foods, Inc . i s a D e l a w a r e c o r p o r a t i o n w i t h i t s

p r i n c i p a l p l a c e o f b u s i n e s s i n A r k a n s a s . T y s o n F o o d s , I n c . a l s o i s t h e s u c c e s s o r i n

i n t e r e s t b y m e r g e r t o i b p , i n c .

7 . Tyson Fresh Meat, Inc . i s a D e l a w a r e c o r p o r a t i o n w i t h i t s

p r i n c i p a l p l a c e o f b u s i n e s s i n A r k a n s a s .

8 . P l a i n t i f f T y s o n I n t e r n a t i o n a l C o . , L t d . i s a f o r e i g n c or p o r a t i o n

o r g a n i z e d u n d e r t h e l a w s o f B e r m u d a .

9 . P l a i n t i f f F o o d b r a n d s A me r i c a , I n c . i s a D e l a w a r e c o r p o r a t i o n

w i t h i t s p r i n c i p a l p l a c e o f b us i n e s s i n A r k a n s a s .

1 0 . Plaintiff Exelon Corp . i s a P e n n s y l v a n i a c o r p o r a t i o n w i t h i t s

p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s .



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1 1 . Plaintif f Unicorn Corp . w a s , a t a l l r e l e v a n t t i m e s , a n I l l i n o i s

c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s.

1 2 . Plaintiff Exelon Generation Company, LLC is a Pennsylvania

l i m i t e d l i a b i l i t y c or p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n P e n n s y l v a n i a .

1 3 . Plaintiff Commonwealth Edison Co . i s a n I l l i n o i s c o r p o r a t i o n

w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s .

1 4 . Plaintiff PECO Energy Company is a Pennsylvania corporation

w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n P e n n s y l v a n i a .

1 5 . Plaintif f AmerGen Energy Company LLC is a Delaware limited

l i a b i l i t y c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n P e n n s y l v a n i a .

1 6 . P l a i n t i f f P u b l i c S e r v i c e E n t e r p r i s e G r o u p i s a N e w Je r s e y

c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n N e w J e r s e y .

17 . Plaintif f Public S erv ice Electric & Gas Co . , I n c . i s a N e w

J e r s e y c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n N e w J e r s e y .

1 8 . P l a i n t i f f P S E G R e s o u r c e s , I n c . i s a N e w Je r s e y c o r p o r a t i o n

w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n N e w J e r s e y .

1 9 . P l a i n t i f f T e x a s I n d e p e n d e n t E n e r g y , L L P i s a T e x a s c o r p o r a t i o n

w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n T e x a s .



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20 . Plaintiff Texas Independent Energy Operating Co . , L LC i s a

T e xa s c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n T e x a s.

2 1 . Upon infor mation and bel ief, Defendant Marsh & McLennan

Companies, Inc . ( " MM C ") i s a D e l a w a r e c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f

business in New York .

22 . Upon information and belief, Defendant Marsh Inc . ( " M a r s h

I n c . ") i s a D e l a w a r e c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n N e w Yo r k .

U p o n i n f o r m a t i o n a n d b e l i e f , M a r s h I n c . i s a w h o l l y - o w n e d s u b s i d i a r y o f M M C .

(Marsh Inc . a n d M M C a r e c o l l e c t i v e l y r e f e r r e d t o h e r e a s " Ma r s h . " )

23 . Upon infor mation and belief, Defendant Aon Corporation

( "A o n ") i s a D e l a w a r e c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s .

2 4 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t A m e r i c a n I n t e r n a t i o n a l

Group Inc . ("AIG") is a Delaware company with its principal place of business in

New York .

2 5 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t A m e r i c a n I n t e r n a t i o n a l

S p e c i a l t y L i n e s I C i s a s u b s i d i a r y o f A I G, do mi c i l e d i n A l a s k a , w i t h i t s p r i n c i p a l

p l a c e o f b u s i n e s s i n N e w Y o r k .



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26 . Upon information and b elief, Defendant American Home

Assurance Co. i s a s u b s i d i a r y o f AI G , do mi c i l e d i n N e w Y or k , w i t h i t s p r i n c i p a l

place of bus iness in New York .

27 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t I l l i n o i s N a t i o n a l

Insurance Co . i s a s u b s i d i a r y o f A I G , do m i c i l e d i n I l l i n o i s , w i t h i t s p r i n c i p a l p l a c e

o f b us i n e s s i n I l l i n o i s .

28 . Upon infor mation and belief, Defendant Insurance Co . o f t h e

S t a t e o f P A i s a s u b s i d i a r y o f AI G , do mi c i l e d i n P e n n s y l v a n i a , w i t h i t s p r i n c i p a l

p l a c e o f b us i n e s s i n P e n n s y l v a n i a .

29 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t S t a r r E x c e s s L i a b i l i t y

I n s u r a n c e I n t e r n a t i o n a l L i m i t e d i s a s u b s i d i a r y o f A I G , d om i c i l e d i n I r e l a n d , w i t h

i t s p r i n c i p a l p l a c e o f b u s i n e s s i n D u b l i n , I r e l a n d . At a l l t i m e s p e r t i n e n t t o t h i s

complaint, Starr Excess Liability Insurance International Limited transacted

b u s i n e s s i n t h i s D i s t r i c t b y , i n c l u di n g b ut n o t l i m i t e d t o , p r o v i di n g g e n e r a l ,

p r o p e r t y c a s u a l t y , l i f e a n d e x c e s s i n s u r a n c e p r o du ct s .

30 . Upon information and b elief, Defendant Lexington Insurance

C o m p a n y ( " L e x i n g t o n " ) i s a s u b s i d i a r y o f A I G I n c . a n d i s a l s o p a r t l y o w n e d b y

National Union Fire Insur ance Company of Pittsb urg h, PA, The Insuranc e

Company of the State of Pennsylv ania and Birmingham Fire Insurance Company



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o f P e n n s y l v a n i a , wh i c h a r e a l l s u b s i d i a r i e s o f A I G . L e x i n g t o n i s i n c o r p o r a t e d

u n d e r t h e l a w s o f D e l a w a r e w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n M a s s a c h u s e t t s.

3 1 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t N a t i o n a l U n i o n F i r e

Insurance Co . o f P i t t s b u r gh , P A (" Na t i o n a l U n i o n P i t t s b u r g h" ) i s a s u b s i d i a r y o f

A I G a n d i s i n c o r p o r a t e d un d e r t h e l a w s o f P e n n s y l v a n i a w i t h i t s p r i n c i p a l p l a c e o f

business in New York .

32 . Upon infor mation and belief , Defendant ACE Ltd . ("ACE") i s a

C a y m a n I s l a n d s c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s a t 1 7 W o o d b o u r n e

Avenue, Hamilton HM08, Bermuda . At a l l t i m e s p e r t i n e n t t o t h i s c o mp l a i n t , A ce

t r a n s a c t e d b us i n e s s i n t h i s D i s t r i c t b y , i n c l u di n g b ut n o t l i m i t e d t o , p r o vi d i n g

p r o p e r t y , c a s u a l t y , a c c i de n t a n d h e a l t h i n s u r a n c e . U p o n i n f o r m a t i o n a n d b e l i e f ,

M a r s h p l a y e d a l e a d i n g r o l e i n c r e a t i n g AC E , L t d . i n 1 9 8 5 .

33 . Upon infor mation and belief , Defendant ACE American

Insurance Co . ( "A C E A m e r i c a n " ) i s a s u b s i d i a r y o f A C E L t d . a n d i s i n c o r p o r a t e d

u n de r t h e l a w s o f P e n n s y l v a n i a , w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n

Pennsylvania .

34 . Upon inform ation and belief, Defendant ACE Bermuda

Insurance Company Limited ("ACE Bermuda") is a subsidiar y of ACE Ltd,

d o m i c i l e d i n B e r m u da , w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s a t 1 7 Wo o db o u r n e



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Avenue, Hamilton HM08, Bermuda . A t a l l t i m e s p e r t i n e n t t o t h i s c o mp l a i n t , A CE

B e r m u da t r a n s a c t e d b u s i n e s s i n t h i s D i s t r i c t b y , i n c l u di n g b u t n o t l i m i t e d t o ,

p r o v i d i n g ge n e r a l , p r o p e r t y c a s u a l t y , l i f e a n d e x c e s s i n s u r a n c e p r o d uc t s .

3 5 . Upon infor mation and belief, Defendant ACE USA, Inc . ("ACE

U S A " ) i s a D e l a w a r e c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n

Pennsylvania .

36 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t I l l i n o i s U n i o n

Insurance Co . ( "I l l i n o i s U n i o n ") i s a s u b s i d i a r y o f A C E L t d . a n d i s i n c o r p o r a t e d

u n de r t h e l a w s o f I l l i n o i s w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s .

37 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t P a c i f i c E m p l o y e r s

I n s u r a n c e C o m p a n y i s a s u b s i d i a r y o f A C E L t d . a n d a P e n n s y l v a n i a c o m p a n y w i t h

i t s p r i n c i p a l p l a c e o f b u s i n e s s i n P e n n s y l v a n i a .

38 . Upon infor mation and belief, Defendant The Chubb

Corporation ("Chubb Corp . ") i s a c o r p o r a t i o n i n c o r p o r a t e d u n d e r t h e l a w s o f N e w

J e r s e y w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n N e w J e r s e y .

39 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t F e d e r a l I n s u r a n c e C o .

( "F e d e r a l i n s u r a n c e " ) i s a s u b s i d i a r y o f C h u b b C o r p . a n d i s i n c o r p o r a t e d u n d e r t h e

l a w s o f I n d i a n a w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n N e w J e r s e y .



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40 . Upon infor mation and belief, Defendant CNA Financial Corp .

( "C N A F i n a n c i a l " ) i s a c o r p o r a t i o n i n c o r p o r a t e d u n d e r t h e l a w s o f D e l a w a r e w i t h

i t s p r i n c i p a l o f b u s i n e s s i n I l l i n o i s .

4 1 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t T h e C o n t i n e n t a l

Insurance Co . ( " Co n t i n e n t a l I n s u r a n c e " ) i s a s u b s i d i a r y o f C NA I n s u r a n c e

C o mp a n i e s a n d i s i n c o r p o r a t e d u n d e r t h e l a w s o f S o u t h C a r o l i n a , w i t h i t s p r i n c i p a l

p l a c e o f b u s i n e s s i n I l l i n o i s .

42 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t C o n t i n e n t a l C a s u a l t y

C o m p a n y i s a s u b s i d i a r y o f C N A I n s u r a n c e C o m p a n i e s , do m i c i l e d i n I l l i n o i s , w i t h

i t s p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s .

43 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t H a r t f o r d F i n a n c i a l

~ ~ e r v i c e s G r o u p I n c . (" Ha r t f o r d " ) i s a D e l a w a r e c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e

of business in Connecticut .

44 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t T w i n C i t y F i r e

I n s u r a n c e C o . (" Tw i n C i t y " ) i s a s u b s i d i a r y o f H a r t f o r d a n d i s i n c o r p o r a t e d un d e r

t h e l a w s o f I n d i a n a w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n C o n n e c t i c u t .

4 5 . Upon infor mation and belief, Defendant Nutmeg Insurance Co .

( "N u t me g " ) i s a s u b s i d i a r y o f H a r t f o r d , do m i c i l e d i n C o n n e c t i c u t , wi t h i t s p r i n c i p a l

p l a c e o f b u s i n e s s i n C o n n e c t i c u t .



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46 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t S t . P a u l T r a v e l e r s C o . ,

Inc . ( " S t . P a u l " ) i s a M i n n e s o t a c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n

Minnesota .

47 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t T r a v e l e r s I n d e m n i t y

C o mp a n y ( " Tr a v e l e r s I n d e m n i t y " ) i s a s u b s i d i a r y o f S t . P a u l a n d i s i n c o r p o r a t e d

u n d e r t h e l a w s o f C o n n e c t i c u t wi t h i t s p r i n c i p a l p l a c e o f b us i n e s s i n C o n n e c t i c u t .

48 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t T r a v e l e r s C a s u a l t y &

Surety Co . o f Am e r i c a ( " Tr a v e l e r s C a s u a l t y ") i s a s u b s i d i a r y o f S t . P a u l , a n d i s

i n c o r p o r a t e d un d e r t h e l a w s o f C on n e c t i c u t , wi t h i t s p r i n c i p a l p l a c e o f b us i n e s s i n

Connecticut .

49 . Upon infor mation and belief, Defendant Gulf Insurance Co .

( "G u l f I n s u r a n c e " ) i s a s u b s i d i a r y o f S t . P a u l , a n d i s i n c o r p o r a t e d u n d e r t h e l a w s o f

Connecticut with its principal place of b usiness in New York .

50 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t S t . P a u l M e r c u r y

I n s u r a n c e C o . ( " S t . P a u l M e r c u r y " ) i s a s u b s i d i a r y o f S t . P a u l , a n d i s i n c o r p or a t e d

u n de r t h e l a w s o f M i n n e s o t a , w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n M i n n e s o t a .

5 1 . Upon information and belief, Defendant Travelers Excess &

S u r p l us I n s u r a n c e i s a s u b s i d i a r y o f S t . P a u l , d o mi c i l e d i n C o n n e c t i c u t , wi t h i t s

p r i n c i p a l p l a c e o f b u s i n e s s i n C o n n e c t i c u t .



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52 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t T h e T r a v e l e r s

I n d e m n i t y o f A m e r i c a i s a s u b s i d i a r y o f S t . P a u l w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s

i n C o n n e c t i c u t .

53 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t T r a v e l e r s P r o p e r t y

C a s u a l t y I n s u r a n c e C o m p a n y i s a s u b s i d i a r y o f S t . P a ul , d o mi c i l e d i n C on n e c t i c ut ,

w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n C o n n e c t i c ut .

54 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t S t . Paul Fire & MAR

Insurance Co . i s a s u b s i d i a r y o f S t . P a u l , do mi c i l e d i n M i n n e s o t a , w i t h i t s p r i n c i p a l

p l a c e o f b u s i n e s s i n M i n n e s o t a .

5 5 . Upon inform ation and belief, Defendant Zurich Amer ican

Insurance Co . i s a s u b s i d i a r y o f Z u r i c h N .A ., domiciled in New York, with its

p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s .

56 . Upon infor mation and belief , Defendant Amer ican Guaranty

a n d L i a b i l i t y i s a s u b s i d i a r y o f Z u r i c h N . A . , d o mi c i l e d i n I l l i n o i s , wi t h i t s p r i n c i p a l

p l a c e o f b u s i n e s s i n I l l i n o i s .

5 7 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t Z u r i c h A m e r i c a n o f

I l l i n o i s i s a s u b s i d i a r y o f Z u r i c h N .A . , do m i c i l e d i n I l l i n o i s , w i t h i t s p r i n c i p a l p l a c e

of b u s i n e s s i n I l l i n o i s .



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58 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t Z u r i c h S p e c i a l t i e s

L o n d o n L i m i t e d i s a s u b s i d i a r y o f Z u r i c h G l o b a l C o r p o r a t e U K , d o m i c i l e d i n t h e

United Kingdom, with its principal place of business in London, England . A t a l l

t i m e s p e r t i n e n t t o t h i s c om p l a i n t , Z u r i c h S p e c i a l t i e s L o n d o n L i m i t e d t r a n s a c t e d

b u s i n e s s i n t h i s D i s t r i c t b y , i n c l u di n g b u t n o t l i m i t e d t o , p r o v i d i n g g e n e r a l ,

p r o p e r t y c a s u a l t y , l i f e a n d e x c e s s i n s u r a n c e p r o du c t s .

59 . Upon infor mation and belief, Defendant Empire Fire & Marine

I n s u r a n c e C a i s a s u b s i d i a r y o f Z u r i c h N .A . , do mi c i l e d i n N e b r a s k a , w i t h i t s

p r i n c i p a l p l a c e o f b u s i n e s s i n N e b r a s k a .

60 . Defendant Fidelity & Deposit Company of Maryland ("Fidelity

& D e p o s i t " ) i s a s u b s i d i a r y o f Z u r i c h A me r i c a n , a n d i s i n c o r p o r a t e d u n d e r t h e l a w s

o f M a r y l a n d, wi t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s .

6 1 . Upon infor mation and b elief, Defendant XL Capital Ltd . ("XL

C a p i t a l " ) i s i n c o r p o r a t e d u n d e r t h e l a w s o f t h e C a y ma n I s l a n d s a n d h a s i t s

p r i n c i p a l p l a c e o f b u s i n e s s i n B e r m ud a . A t a l l t i m e s p e r t i n e n t t o t h i s c o mp l a i n t ,

X L C a p i t a l t r a n s a c t e d b u s i n e s s i n t h i s D i s t r i c t b y , i n c l u d i n g b u t n o t l i m i t e d t o ,

p r o v i d i n g g e n e r a l , p r o p e r t y c a s u a l t y , l i f e a n d e x c e s s i n s u r a n c e p r o du c t s .

6 2 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t X L I n s u r a n c e

C o m p a n y L i m i t e d i s a s u b s i d i a r y o f X L C a p i t a l , d o m i c i l e d i n t h e U n i t e d K i n g d o m ,



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w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n L o n d o n , E n g l a n d . A t a l l t i m e s p e r t i n e n t t o

t h i s c o m p l a i n t , X L I n s u r a n c e C o m p a n y L i m i t e d t r a n s a c t e d b u s i n e s s i n t h i s D i s t r i c t

b y , i n c l u di n g b u t n o t l i m i t e d t o , p r o v i d i n g ge n e r a l , p r o p e r t y c a s u a l t y , l i f e a n d

e x c e s s i n s u r a n c e p r o d u c t s .

63 . Upon infor mation and belief, Defendant XL Insurance America

I n c . i s a s u b s i d i a r y o f X L C a p i t a l a n d i s a D e l a w a r e c o r p o r a t i o n w i t h i t s p r i n c i p a l

p l a c e o f b u s i n e s s i n C o n n e c t i c u t .

64 . Upon infor mation and b elief, Defendant XL Capital Ltd . i s a

D e l a w a r e c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b us i n e s s i n C o n n e c t i c u t .

6 5 . Upon infor mation and belief, Defendant XL Specialty

I n s u r a n c e C o m p a n y i s a s u b s i d i a r y o f X L C a p i t a l a n d i s a D e l a w a r e c o r p o r a t i o n

w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s .

66 . Upon information and belief, Defendant Greenwich Insurance

C o m p a n y i s a s u b s i d i a r y o f X L C a p i t a l a n d i s a D e l a w a r e c o r p o r a t i o n w i t h i t s

p r i n c i p a l p l a c e o f b u s i n e s s i n C o n n e c t i c u t .

67 . Upon infor mation and belief, Defendant Fireman's Fund

I n s u r a n c e C o . ( "F i r e m a n ' s F u n d ") i s a s u b s i d i a r y o f A l l i a n z A G , a n d i s

i n c o r p o r a t e d un d e r t h e l a w s o f C a l i f o r n i a , w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n

C a l i f o r n i a .



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68 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t N a t i o n a l S u r e t y C o r p .

( "N a t i o n a l S u r e t y " ) i s a p o o l i n g a f f i l i a t e o f F i r e m a n ' s F u n d I n c. , a n d i s

i n c o r p o r a t e d u n de r t h e l a w s o f I l l i n o i s , wi t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n

I l l i n o i s .

69 . Upon information and belief, Defendant Liberty Mutual

Holding Company, Inc . (" L i b e r t y M ut u a l H o l d i n g ") i s a c o r p o r a t i o n i n c o r p o r a t e d

u n de r t h e l a w s o f Ma s s a c hu s e t t s , w i t h i t s p r i n c i p a l p l a c e o f b us i n e s s i n

Massachusetts .

70 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t L i b e r t y M u t u a l

Insurance Co . , i s a c o r p o r a t i o n i n c o r p o r a t e d un d e r t h e l a w s o f M a s s a c h us e t t s , w i t h

i t s p r i n c i p a l p l a c e o f b us i n e s s i n M a s s a c h us e t t s .

7 1 . Upon infor mation and belief, Defendant Employers Insurance

of Wausau is a member of Liberty Mutual Insurance Companies, domiciled in

W i s c o n s i n , wi t h i t s p r i n c i p a l p l a c e o f b us i n e s s i n W i s c o n s i n .

72 . Upon infor mation and belief, Defendant Great American

A s s u r a n c e C o . i s a n O h i o c om p a n y wi t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n O h i o .

7 3 . Upon inform ation and belief, Defendant American Protection

Insurance Co . is a sub sidiary of Kemper Auto and Home Group and an Illinois

c o mp a n y w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s .



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74 . Upon inform ation and belief, Defendant AWA Holdings is a

D i s t r i c t o f C o l u mb i a c o m p a n y w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n W a s h i n g t o n ,

D. C .

7 5 . Upon information and belief, Defendant Allied Wor ld

Assurance Company is a Bermuda-b ased insurance and reinsurance company with

i t s p r i n c i p a l p l a c e o f b u s i n e s s a t 4 3 V i c t o r i a S t r e e t , Ha m i l t o n H M 1 2, B e r m u d a . A t

a l l t i m e s p e r t i n e n t t o t h i s c o m p l a i n t , A l l i e d W o r l d A s s u r a n c e C o mp a n y t r a n s a c t e d

b u s i n e s s i n t h i s D i s t r i c t b y , i n c l u d i n g b u t n o t l i m i t e d t o , p r ov i d i n g ge n e r a l ,

p r o p e r t y c a s u a l t y , l i f e a n d e x c e s s i n s u r a n c e p r o du c t s .

76 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t A m e r i c a n A l t e r n a t i v e

I n s u r a n c e C o r p o r a t i o n i s a s u b s i d i a r y o f M u n i c h R e a n d a N e w Y o r k c o m p a n y

w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n N e w J e r s e y .

77 . Upon infor mation and belief , Defendant ARCH Capital Group

i s a D e l a w a r e c o m p a n y w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n N e w Y o r k .

7 8 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t A r c h I n s u r a n c e

C o mp a n y i s a s u b s i d i a r y o f A r c h C a p i t a l G r o u p a n d i s a M i s s o u r i c o m p a n y w i t h i t s

p r i n c i p a l p l a c e o f b u s i n e s s i n N e w Y o r k .

79 . Upon information and belief, Defendant Arch Reinsurance

L i m i t e d i s a s u b s i d i a r y o f A r c h C a p i t a l G r o u p a n d i s a B e r m u d a c o m p a n y w i t h i t s



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p r i n c i p a l p l a c e o f b u s i n e s s i n H a m i l t o n , B e r m u d a . A t a l l t i m e s p e r t i n e n t t o t h i s

c o mp l a i n t , A r c h Re i n s u r a n c e L i m i t e d t r a n s a c t e d b u s i n e s s i n t h i s D i s t r i c t b y ,

i n c l u d i n g b u t n o t l i m i t e d t o , p r o v i d i n g g e n e r a l , p r o p e r t y c a s u a l t y , l i f e a n d e x c e s s

i n s u r a n c e p r o d uc t s .

8 0 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t A r c h S p e c i a l t y

I n s u r a n c e C o m p a n y i s a s u b s i d i a r y o f A r c h C a p i t a l G r o u p , d o m i c i l e d i n

W i s c o n s i n , wi t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n W i s c o n s i n .

8 1 . Upon inform ation and belief, Defendant Arch Insurance

(Bermuda) Ltd . i s a s u b s i d i a r y o f A r c h C a p i t a l G r o u p a n d i s a B e r m u d a c o mp a n y

w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n H a m i l t o n , B e r m u d a . A t a l l t i m e s p e r t i n e n t t o

t h i s c o m p l a i n t , A r c h I n s u r a n c e ( B e r m u d a ) L t d . t r a n s a c t e d b us i n e s s i n t h i s D i s t r i c t

b y , i n c l ud i n g b ut n o t l i m i t e d t o , p r o v i d i n g g e n e r a l , p r o p e r t y c a s u a l t y , l i f e a n d

excess insurance product s .

8 2 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t C o m mo n w e a l t h

I n s u r a n c e C o m p a n y i s a p a r t o f F a i r f a x F i n a n c i a l G r o u p a n d i s a W a s h i n g t o n

c o mp a n y w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n W a s h i n g t o n .

83 . Upon inform ation and belief, Defendant Employers

Reinsurance Corp . i s a p a r t o f G E G l o b a l I n s u r a n c e G r o up a n d i s a M i s s o u r i

c o mp a n y w i t h i t s p r i n c i p a l p l a c e o f b us i n e s s i n K a n s a s .



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84 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t E n d u r a n c e S p e c i a l t y

I n s u r a n c e L i m i t e d i s a B e r m u d a c o m p a n y w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s a t 9 0

Pitts Bay Road, Pembrok e HM 08, Berm uda . At a l l t i m e s p e r t i n e n t t o t h i s

c o mp l a i n t , E n d ur a n c e S p e c i a l t y I n s u r a n c e L i m i t e d t r a n s a c t e d b u s i n e s s i n t h i s

D i s t r i c t b y , i n c l u d i n g b ut n o t l i m i t e d t o , p r o v i d i n g g e n e r a l , p r o p e r t y c a s u a l t y , l i f e

a n d e x c e s s i n s u r a n c e p r o d u c t s .

8 5 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t E s s e x I n s u r a n c e

Company (DE) i s a d i v i s i o n o f t h e M a r k e t G r o u p , d om i c i l e d i n D e l a w a r e , w i t h i t s

p r i n c i p a l p l a c e o f b u s i n e s s i n V i r g i n i a .

86 . Upon infor mation and b elief, Defendant HCC Insurance

H o l d i n g s , I n c . i s a D e l a w a r e c o r p or a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n

Texas .

87 . Upon infor mation and belief, Defendant Houston Casualty

C o m p a n y L i m i t e d i s a s u b s i d i a r y o f H C C I n s u r a n c e H o l d i n g s , I n c . , d om i c i l e d i n

T e x a s , w i t h i t s p r i n c i p a l p l a c e o f b us i n e s s i n T e x a s .

8 8 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t L i b e r t y I n s u r a n c e

U n d e r w r i t e r s I n c . i s a N e w Y o r k c o m p a n y w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n

New Yor k .



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89 . The following Defendants, collectively ref erred to herein as

C e r t a i n U n d e r w r i t e r s a t L l o y d' s , L o n d o n , a r e f o r e i g n s y n d i c a t e s e n g a g e d i n t h e

b u s i n e s s o f u n d e r w r i t i n g i n s ur a n c e : L l o y d ' s , L o n d o n S y n d i c a t e s N o s . 0 0 3 3 HI S ,

0079 P J G , 019 0 FRW, 0282 LSM, 0318 MSP, 0435 FDY, 0588 NKB, 0623 AFB,

0 861 NJM , 100 3 SJC , 1 096 RAS , 1183 TAL, 1200 ROC , 120 9 MEB , 1209 XL ,

7 211 S PL, 1225 AES, 124 3 EUL, 1414 RTH, 1 5 1 1 MEP, 200 0 HAR, 200 1 AML,

200 3 SJC, 2020 WEL, 2027 COX, 2488 AGM, 2791 MAP, 2323 NLU, 2623 AFB,

3 000 MKL, 5000 S PL .

90 . Upon information and belief, Defendant Royal & Sun Alliance

i s p a r t o f R o y a l & S u n A l l i a n c e I n s u r a n c e G r o u p , do m i c i l e d i n t h e U n i t e d

] k i n g d o m , a n d h a s i t s p r i n c i p a l p l a c e o f b u s i n e s s i n t h e U n i t e d K i n g d o m . A t a l l

t i m e s p e r t i n e n t t o t h i s c o mp l a i n t , R o y a l & S u n A l l i a n c e t r a n s a c t e d b u s i n e s s i n t h i s

] D i s t r i c t b y , i n c l u d i n g b u t n o t l i m i t e d t o , p r o v i d i n g g e n e r a l , p r o p e r t y c a s u a l t y , l i f e


9 1 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t M a r i n e I n s u r a n c e

C o m p a n y L i m i t e d i s d o m i c i l e d i n t h e U n i t e d K i n g d o m w i t h i t s p r i n c i p a l p l a c e o f

b u s i n e s s i n L o n d o n , E n g l a n d . At a l l t i m e s p e r t i n e n t t o t h i s c o mp l a i n t , Ma r i n e

I n s u r a n c e C o m p a n y L i mi t e d t r a n s a c t e d b u s i n e s s i n t h i s D i s t r i c t b y , i n c l ud i n g b ut



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n o t l i m i t e d t o , p r o v i d i n g g e n e r a l , p r o p e r t y c a s u a l t y , l i f e a n d e x c e s s i n s u r a n c e

products .

92 . Upon information and belief, Defendant Wuerttembergische

Versicherrungs A .G . i s d o mi c i l e d i n G e r m a n y w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s

i n S t u t t g a r t , G e r m a n y . A t a l l t i m e s p e r t i n e n t t o t h i s c o m p l a i n t , W ue r t t e m b e r g i s c h e

Versicherrungs A .G . t r a n s a c t e d b u s i n e s s i n t h i s D i s t r i c t b y , i n c l u di n g b u t n o t

l i m i t e d t o , p r o v i di n g g e n e r a l , p r o p e r t y c a s u a l t y , l i f e a n d e x c e s s i n s u r a n c e p r o d uc t s .

9 3 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t C i g n a H e a l t h C a r e i s a

s u b s i d i a r y o f C I G N A G r o u p w h i c h i s a D e l a w a r e C o r p o r a t i o n w i t h i t s p r i n c i p a l

p l a c e o f b u s i n e s s i n D e l a w a r e .

94 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t A e t n a , I n c . i s a

P e n n s y l v a n i a c o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n C o n n e c t i c u t .

95 . Upon infor mation and belief, Defendant Factory Mutual

I n s u r a n c e C o . i s a s u b s i d i a r y o f F M G l o b a l a n d i s a R h o de I s l a n d c o m p a n y w i t h i t s

p r i n c i p a l p l a c e o f b u s i n e s s i n R h o d e I s l a n d .

96 . Upon information and belief, Defendant Lumbermens Mutual

C a s u a l t y i s a p a r t o f K e m p e r I n s u r a n c e C o m p a n i e s a n d i s a n I l l i n o i s c o m p a n y w i t h

i t s p r i n c i p a l p l a c e o f b u s i n e s s i n I l l i n o i s .



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97 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t M a x R e L i m i t e d i s a

B e r m u d a - b a s e d c o m p a n y w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n B e r m u d a. A t a l l

t i m e s p e r t i n e n t t o t h i s c o mp l a i n t , M a x R e L i m i t e d t r a n s a c t e d b us i n e s s i n t h i s

d i s t r i c t b y , i n c l u d i n g b u t n o t l i m i t e d t o , p r o v i d i n g g e n e r a l , p r o p e r t y c a s u a l t y , l i f e


9 8 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t H a r t f o r d S t e a m B o i l e r

I& I C o . i s a C o n n e c t i c u t c om p a n y wi t h i t s p r i n c i p l e p l a c e o f b u s i n e s s i n

Connect i c u t .

99 . U p o n i n f o r m a t i o n a n d b e l i e f , D e f e n d a n t N a v i g a t o r s G r o u p I n c .

i s a D e l a w a r e C o r p o r a t i o n w i t h i t s p r i n c i p a l p l a c e o f b u s i n e s s i n N e w Y o r k .

JURI SDICTION ANDVENUE

100 . T h i s C o u r t h a s s u b j e c t - m a t t e r j u r i s d i c t i o n u n de r , i n t e r a l i a , 28

I J . S . C . 1 3 3 1 a n d 1 3 3 7 .

1 0 1 . T h i s C o u r t h a s p e r s o n a l j u r i s d i c t i o n o v e r e a c h D e f e n d a n t a s

e a c h D e f e n d a n t t r a n s a c t e d b us i n e s s i n t h i s D i s t r i c t b y , i n c l ud i n g b u t n o t l i m i t e d t o,

p r o v i di n g e i t h e r i n s u r a n c e b r o k e r a g e s e r v i c e s o r g e n e r a l , p r o p e r t y c a s u a l t y , l i f e ,

e x c e s s , a n d a va r i e t y o f o t h e r I n s u r a n c e P r o du c t s a s d e f i n e d he r e i n .

1 0 2 . Th i s D i s t r i c t i s t h e p r o p e r v e n u e p ur s u a n t t o S e c t i o n s 4 , 1 2 a n d

1 6 o f t h e C l a y t o n A c t , 1 5 U . S . C . 15 , 2 2 a n d 2 6 , 1 8 U . S . C . 1 9 6 5 ( a ) , a n d 28



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U . S . C . 1 3 9 1 ( b ) , ( c ) a n d ( d) b e c a u s e D e f e n d a n t s r e s i d e , t r a n s a c t e d b u s i n e s s , w e r e

o r h a d a ge n t s i n t h i s D i s t r i c t , a n d b e c a us e a s u b s t a n t i a l p o r t i o n o f t h e a f f e c t e d

i n t e r s t a t e t r a d e a n d c om me r c e d e s c r i b e d he r e i n , i s a n d h a s b e e n c a r r i e d ou t i n t h i s

D i s t r i c t .

PLAI NTIFFS

1 0 3 . Th e r e a r e b a s i c a l l y t h r e e t y p e s o f e n t i t i e s i n t h e c o r p o r a t e

i n s u r a n c e m a r k e t . F i r s t , t he r e a r e c l i e n t s : c om p a n i e s s uc h a s P l a i n t i f f s t h a t s e e k t o

p u r c h a s e I n s u r a n c e P r o d uc t s f o r t h e i r b u s i n e s s e s . S e c o n d, t h e r e a r e b r o k e r s ,

c o n s ul t a n t s , a n d i n d e p e n d e n t a g e n t s ( c o l l e c t i v e l y " b r o k e r s " ) t h a t c l i e n t s h i r e t o

a d v i s e t h e m a s t o n e e d e d c o v e r a g e a n d t o f i n d i n s u r a n c e c o m p a n i e s o f f e r i n g t h a t

coverage . B r o k e r s r e p r e s e n t t h e c l i e n t , o b t a i n p r i c e q uo t e s , a n d p r e s e n t t h e qu ot e s

t o t h e c l i e n t . T hi r d , t h e r e a r e i n s u r a n c e c o m p a n i e s . T h e y s u b mi t q uo t e s t o t h e

b r o k e r s a n d , i f s e l e c t e d b y t h e c l i e n t , e n t e r i n t o a c o n t r a c t t o p r o v i d e i n s u r a n c e f o r

t h a t c l i e n t ' s r i s k .

1 0 4 . P l a i n t i f f s a r e c o r p or a t e i n s u r a n c e c l i e n t s .

1 0 5 . A l l o f t h e P l a i n t i f f s w e r e c l i e n t s o f M a r s h a n d a r e p u r s u i n g

c l a i m s a g a i n s t M a r s h a n d , e x c e p t a s i n d i c a t e d i n t h e n e x t p a r a g r a p h , a l l o t h e r

Defendants .



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106 . P l a i n t i f f N e w C i n g u l a r , a s a s u c c e s s o r t o A T & T W i r e l e s s , w a s

a c l i e n t o f A o n a n d i s p u r s u i n g c l a i m s a g a i n s t A o n . E x e l o n h a s s e t t l e d i t s c l a i m s

a g a i n s t A o n a n d t h e r e f o r e m a k e s n o c l a i m s a n d s e e k s n o r e l i e f a g a i n s t A o n .

DEFENDANTS AND CO-CONSPIRATORS

107 . F o r p u r p o s e s o f t h i s C o mp l a i n t , M a r s h a n d A o n w i l l b e r e f e r r e d

t o c ol l e c t i v e l y a s t h e "B r o k e r D e f e n d a n t s . "

1 0 8 . F o r p u r p o s e s o f t h i s C o m p l a i n t , A I G , A m e r i c a n I n t e r n a t i o n a l

~ ~ p e c i a l t y L i n e s I C , A m e r i c a n H o m e A s s u r a n c e C o . , I l l i n o i s N a t i o n a l I n s u r a n c e

Co. , I n s u r a n c e C o . o f t h e S t a t e o f P A , S t a r r E x c e s s L i a b i l i t y I n s u r a n c e

I n t e r n a t i o n a l , L i m i t e d , L e x i n g t o n , N a t i o n a l U n i o n F i r e I n s u r a n c e C o . o f P A , A C E ,

ACE Amer ican Insurance Co ., ACE Berm uda Insurance Company Limited, ACE

USA, Pacific Employer s Insurance Company, Chubb Corp . , F e d e r a l I n s u r a n c e ,

CNA Financial , Continen tal Insurance , Continen tal Casualty Company, Hartfor d,

Twin City, Nutmeg Insurance Co . , S t . P a u l Tr a v e l e r s C o . , I n c . , Tr a v e l e r s

I n d e mn i t y , T r a v e l e r s C a s u a l t y , Gu l f I n s u r a n c e , S t . P a u l M e r c u r y , Tr a v e l e r s E x c e s s

. & S u r p l u s I n s u r a n c e , T h e T r a v e l e r s I n d e m n i t y o f A m e r i c a , T r a v e l e r s P r o p e r t y

C a s u a l t y I n s u r a n c e C o . , S t . Paul Fire & MAR Insurance Co . , Z ur i c h A m e r i c a n ,

A m e r i c a n G u a r a n t y a n d L i a b i l i t y , Z u r i c h A m e r i c a n o f I l l i n o i s , Z u r i c h S p e c i a l t i e s

London Limited, Empire Fire & Mar ine Insurance Co. , Fi d e l i t y & D e p o s i t , X L



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Capital, XL Insurance Company Limited, XL Insurance Amer ica Inc . , X L

Specialty Insurance Company, Greenwich Insurance Company, Fireman's Fund,

N a t i o n a l S u r e t y , L i b e r t y M u t u a l H o l d i n g , L i b e r t y M u t u a l I n s u r a n c e C o . ,

Employers Insurance Co ., Great American Assurance Co ., American Protection

Insurance Co ., AWA Holdings, Allied Worl d Assurance Company, American

A l t e r n a t i v e I n s u r a n c e C o r p o r a t i o n , A r c h C a p i t a l G r o u p , A r c h I n s u r a n c e C o m p a n y ,

A r c h Re i n s u r a n c e L i m i t e d , A r c h S p e c i a l t y I n s u r a n c e C o . , C o m m o n w e a l t h

Insurance Company, Employer s Reinsurance Corp . , E n d ur a n c e S p e c i a l t y

' [ n s u r a n c e L i m i t e d , E s s e x I n s u r a n c e C o m p a n y , H C C I n s u r a n c e H o l d i n g s , H o u s t o n

CC a s u a l t y C o m p a n y , L i b e r t y I n s u r a n c e U n d e r w r i t e r s , L l o y d s S y n d i c a t e s , R o y a l &

Sun Alliance, Marine Insurance Company Limited, Wuerttembergische

Versicherrungs A . G . , C i g n a H e a l t h C a r e , Ae t n a , I n c . , F a c t o r y M ut u a l I n s u r a n c e

' C o ., Lumbermens Mutual Casualty, Max Re Limited, Hartf ord Steam Boiler I&I

Co . , N a v i g a t o r s G r o u p I n c . , a n d C e r t a i n U n d e r w r i t e r s a t L l o y ds w i l l b e r e f e r r e d t o

c o l l e c t i v e l y a s t h e " I n s u r e r D e f e n d a n t s . "

1 0 9 . F o r p u r p o s e s o f t h i s C o m p l a i n t , t h e B r o k e r D e f e n d a n t s a n d t h e

I n s u r e r D e f e n d a n t s w i l l b e r e f e r r e d t o co l l e c t i v e l y a s " D e f e n d a n t s . "



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1 1 0 . V a r i o us o t h e r p e r s o n s , c or p o r a t i o n s , a n d o t h e r l e g a l e n t i t i e s , n o t

n a m e d a s D e f e n d a n t s h e r e i n , h a v e p a r t i c i p a t e d a s c o - c o n s p i r a t o r s w i t h D e f e n d a n t s

a n d h a v e p e r f o r m e d a c t s a n d ma d e s t a t e m e n t s i n f u r t h e r a n c e o f t h e c o n s p i r a c y .

1 1 1 . Wh e n e v e r r e f e r e n c e i s m a d e i n t h i s C o m p l a i n t t o a n y a c t , d e e d

o r t r a n s a c t i o n o f a n y c o r p or a t i o n , t h e a l l e g a t i o n m e a n s t h a t t h e c o r p o r a t i o n

e n g a g e d i n t h e a c t , d e e d or t r a n s a c t i o n b y o r t h r o u gh o n e o r m o r e o f i t s r e s p e c t i v e

o f f i c e r s , d i r e c t o r s , a g e n t s , e m p l o y e e s o r r e p r e s e n t a t i v e s w h i l e h e , s h e , o r t h e y we r e

a c t i v e l y e n g a g e d i n t h e m a n a g e m e n t , d i r e c t i o n , c o n t r o l o r t r a n s a c t i o n o f t h e

c o r p o r a t i o n ' s b us i n e s s o r a f f a i r s .

THE RELEVANT MARKET

1 1 2 . F o r p u r p o s e s o f t h i s C o mp l a i n t , t h e t e r m " I n s u r a n c e P r o d uc t s "

i n c l u d e s wi t h o u t l i m i t a t i o n , c om me r c i a l g e n e r a l l i a b i l i t y i n s u r a n c e , p r o p e r t y a n d

c a s u a l t y i n s u r a n c e , e x c e s s p r o p e r t y o r ca s u a l t y o r l i a b i l i t y i n s u r a n c e , d i r e c t o r s a n d

o f f i c e r s i n s u r a n c e , e r r o r s a n d o mi s s i o n s i n s u r a n c e , e m p l o ym e n t p r a c t i c e s l i a b i l i t y

i n s u r a n c e , s u r e t y i n s u r a n c e , h e a l t h i n s u r a n c e , s ur p l u s l i n e s i n s u r a n c e , p e r s o n a l l i f e

a n d a c c i d e n t i n s u r a n c e , a n d r e i n s u r a n c e .

113 . F o r p u r p o s e s o f t h i s C o mp l a i n t , t h e r e l e v a n t m a r k e t i n c l u d e s

' w i t h o u t l i m i t a t i o n t h e m a r k e t f o r I n s u r a n c e P r o d uc t s a n d i n s u r a n c e b r o k e r a g e

s e r v i c e s .



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114 . F o r p u r p o s e s o f t h i s C o m p l a i n t , t h e r e l e v a n t g e o g r a p h i c m a r k e t

i s t h e U n i t e d S t a t e s a n d i t s t e r r i t o r i e s a s a w ho l e.

115 . A t a l l t i m e s p e r t i n e n t t o t h i s C o mp l a i n t , D e f e n d a n t s e n t e r e d

i n t o a g r e e m e n t s a n d e n g a g e d i n c o n d u c t d i r e c t l y a n d a s c o - c o n s p i r a t o r s w h i c h

u n r e a s o n a b l y r e s t r a i n e d a n d c on t i n u e s t o r e s t r a i n t r a d e i n t h e r e l e v a n t m a r k e t a n d

geographic mark ets .

TRADE AND INTERSTATE COMMERCE

1 1 6 . A t a l l t i m e s p e r t i n e n t t o t h i s C om p l a i n t , t h e I n s u r e r D e f e n d a n t s

s o l d , a n d t h e B r o k e r D e f e n d a n t s b r o k e r e d , t h e s a l e s o f s u b s t a n t i a l q u a n t i t i e s o f

I n s u r a n c e P r o d u c t s i n a c o n t i n u o us a n d u n i n t e r r u p t e d f l o w o f i n t e r s t a t e c o mm e r c e .

1 1 7 . T he a c t i v i t i e s o f D e f e n d a n t s a n d t h e i r c o - co n s p i r a t o r s , a s

d e s c r i b e d i n t h i s C o mp l a i n t , w e r e w i t h i n t h e f l o w o f a n d s u b s t a n t i a l l y a f f e c t e d

i n t e r s t a t e c o m m e r c e . T h e c o n d uc t o f D e f e n d a n t s a n d t h e i r c o - c o n s p i r a t o r s

f o r e s e e a b l y r e s t r a i n e d i n t e r s t a t e c o m me r c e .

MARSH

118 . M a r s h i s t h e l a r g e s t p r o v i d e r o f i n s u r a n c e b r o k e r a g e a n d

c o n s u l t i n g s e r v i c e s i n t h e wo r l d .

1 1 9 . M a r s h ' s i n s u r a n c e b r o k e r a g e b u s i n e s s a l o n e e m p l o y e d 4 2 , 0 0 0

e m p l o ye e s i n 4 1 0 o f f i c e s l o c a t e d i n o v e r 1 0 0 c o un t r i e s .



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1 2 0 . A c co r d i n g t o i t s 2 0 0 3 f i n a n c i a l s t a t e m e n t , M a r s h ' s i n s u r a n c e

b r o k e r a g e b u s i n e s s g e n e r a t e d a n n u a l r e v e n u e s o f o v e r $ 6. 9 b i l l i o n .

1 2 1 . M a r s h c i t e d i t s s i z e a n d s o p hi s t i c a t i o n a s a p r i m a r y r e a s o n t o

h i r e t h e c o m p a n y .

122 . M a r s h h e l d i t s e l f o u t t o i t s c l i e n t s , i n c l u di n g P l a i n t i f f s , a s a

t r u s t e d e x p e r t i n t h e a n a l y s i s a n d p l a c e me n t o f I n s u r a n c e P r o d uc t s .

123 . M a r s h a s s u r e d i t s c l i e n t s , i n c l u d i n g P l a i n t i f f s , t h a t i t s " g u i d i n g

p r i n c i p a l i s t o c o n s i d e r o u r c l i e n t ' s b e s t i n t e r e s t i n a l l p l a c e m e n t s . "

124 . M a r s h a s s u r e d i t s c l i e n t s , i n c l u di n g P l a i n t i f f s , t h a t " We a r e o u r

c l i e n t s ' a d v o c a t e s , a n d w e r e p r e s e n t t h e m i n n e g o t i a t i o n s . W e d o n ' t r e p r e s e n t t h e

[ i n s u r a n c e c o m p a n i e s ] . "

125 . Co n t r a r y t o i t s a s s u r a n c e s , Ma r s h vi o l a t e d t h e t r u s t o f i t s

c l i e n t s , i n c l u d i n g P l a i n t i f f s .

126 . M a r s h d i d n o t c o n s i d e r t h e b e s t i n t e r e s t s o f i t s c l i e n t s , i n c l u d i n g

P l a i n t i f f s , i n a l l p l a c e m e n t s o f i n s u r a n c e P r o d uc t s .

127 . M a r s h di d n o t a c t a s t h e d i s i n t e r e s t e d a dv o ca t e o f i t s c l i e n t s ,

i n c l u d i n g P l a i n t i f f s , i n i t s b r o k e r a g e a n d /o r p l a c e m e n t o f I n s u r a n c e P r o d u ct s .



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128 . To t h e c o n t r a r y , Ma r s h p l a c e d i t s o w n i n t e r e s t s , a s w e l l a s t h o s e

o f t h e I n s u r e r D e f e n d a n t s a n d t h e i r c o- co n s p i r a t o r s , a b o ve t h os e o f i t s c l i e n t s ,

i n c l ud i n g P l a i n t i f f s .

129 . As p a r t o f i t s I l l e g a l S c h e me w i t h t h e D e f e n d a n t I n s u r e r s ,

M a r s h , b e g i n n i n g i n t h e 1 9 9 0 s , r e c o n f i g u r e d i t s b r o k e r a g e b u s i n e s s , c e n t r a l i z i n g

p o w e r i n a g r o u p b a s e d a t i t s h e a d qu a r t e r s i n N e w Y o r k C i t y .

130 . M a r s h c r e a t e d a n o f f i c e i n M a n h a t t a n t h a t c a m e t o b e c a l l e d

Marsh Global Braking (also k nown as "MBG" or "MMGB"), which over saw

p o l i c y p l a c e m e n t d e c i s i o n s i n M a r s h ' s m a j o r b u s i n e s s l i n e s .

1 3 1 . M a r s h g a v e M a r s h G l o b a l B r o k i n g c o n t r o l o v e r b o t h b u s i n e s s

placement and Marsh's so-called "commission" arrangements . T h e s e i n c l u d e d

E x c e s s C a s u a l t y , He a l t h , F i n P r o ( F i n a n c i a l P r o d uc t s ) a n d M i d d l e M a r k e t

(businesses paying less than one million dollars in annual insurance premiums) .

132 . A t t h e s a m e t i m e , M a r s h c r e a t e d l i s t s o f i n s u r e r s w h o s e

p r o du ct s i t s e m p l oy e e s w e r e t o s e l l m or e v i g o r o us l y t o c l i e n t s , i n c l u d i n g P l a i n t i f f s .

T h e s e l i s t s w e r e n o t b a s e d o n p r i c e o r s e r v i c e , b ut o n t h e a m o u n t o f m o n e y t h e

Insurer Defendants would pay Marsh .

1 3 3 . Marsh rewarded those employees who sold clients more

I n s u r a n c e P r o d u c t s f r o m f a v o r e d i n s u r e r s , a n d c h a s t i s e d t h o s e w h o d i d n o t .



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AON

134 . A o n i s t h e s e c o n d l a r g e s t p r o v i d e r o f i n s u r a n c e b r o k e r a g e a n d

c o n s u l t i n g s e r v i c e s i n t h e wo r l d .

1 3 5 . Aon Corporation employed approxim ately 4 7,000 employees in

o f f i c e s l o c a t e d a c r o s s t h e w o r l d .

136 . A cc o r d i n g t o i t s 2 0 0 4 a n n u a l r e p o r t , A o n ' s r i s k a n d i n s u r a n c e

b r o k e r a g e b us i n e s s g e n e r a t e d a n n u a l r e v e n u e s o f o v e r $ 5 . 7 b i l l i o n .

137 . A o n h e l d i t s e l f o u t t o i t s c l i e n t s a s a t r u s t e d e x p e r t i n t h e

a n a l y s i s a n d p l a c e m e n t o f I n s u r a n c e P r o d u c t s .

138 . A on v i o l a t e d t h e t r u s t o f i t s c l i e n t s , i n c l u d i n g P l a i n t i f f s , i n i t s

b r o k e r a g e o f I n s u r a n c e P r o d uc t s .

139 . A on d i d n o t c o n s i d e r t h e b e s t i n t e r e s t s o f i t s c l i e n t s , i n c l u di n g

P l a i n t i f f s , i n a l l p l a c e m e n t s o f I n s u r a n c e P r o d u c t s .

1 4 0 . Ao n di d n o t a c t a s t h e di s i n t e r e s t e d a dv o ca t e o f i t s c l i e n t s ,

i n c l u di n g P l a i n t i f f s , i n i t s b r o k e r a g e o f I n s u r a n c e P r o d uc t s .

1 4 i . T o t h e c o n t r a r y , A on p l a c e d i t s o wn i n t e r e s t s , a s w e l l a s t h o s e

o f t h e I n s u r e r D e f e n d a n t s a n d t h e i r c o- co n s p i r a t o r s , a b o ve t h os e o f i t s c l i e n t s ,

: i n c l u di n g P l a i n t i f f s .



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142 . Ao n c r e a t e d l i s t s o f i n s u r e r s w h o s e p r o d u c t s i t s e m p l o y e e s w e r e

t o s e l l m o r e v i g o r o u s l y t o c l i e n t s , i n c l u d i n g P l a i n t i f f s. T h e s e l i s t s w e r e n o t b a s e d

o n p r i c e o r s e r v i c e , b u t o n t h e a m o u n t o f m o n e y t h e I n s u r e r D e f e n d a n t s w o ul d p a y

Aon .

1 4 3 . Aon rewarded those employees who sold clients more

I n s u r a n c e P r o d u c t s f r o m f a v o r e d i n s u r e r s , a n d c h a s t i s e d t h o s e w h o d i d n o t .

THE ILLEGAL SCHEME: STEERING ANDCUSTOMERALLOCATION

144 . S i n c e a t l e a s t t h e e a r l y 1 9 9 0 s , t h e B r o k e r D e f e n d a n t s e n t e r e d

i n t o a s c h e m e w i t h t h e I n s u r e r D e f e n d a n t s a n d t h e i r c o - c o n s p i r a t o r s u n d e r w h i c h

t h e I n s u r e r D e f e n d a n t s h a v e p a i d t h e B r o k e r D e f e n d a n t s i n e x c e s s o f a b i l l i o n

d o l l a r s i n s o - c a l l e d "c o mm i s s i o n s " t o s t e e r t h e m b u s i n e s s a n d s h i e l d t h e m f r o m

competition .

145 . The agreements b y the Insurer Defendants to pay improper

c o mm i s s i o n s t o t h e B r o k e r D e f e n d a n t s h a v e g o n e b y v a r i o u s n a m e s , i n c l u d i n g

w i t h o ut l i m i t a t i o n " c o n t i n g e n t c o m m i s s i o n s , " "p l a c e m e n t s e r v i c e a g r e e m e n t s "

( " P S A s " ) , "m a r k e t s e r v i c e s a g r e e m e n t s " (" M B A s " ) , "u n d e r w r i t e r s e r v i c e

a g r e e m e n t s " ( " U S A s " ) , "s p e c i a l p r o d u c e r a g r e e m e n t s , " " q u a l i t y b u s i n e s s

i n c e n t i v e s a w a r d s ," " p r e f e r r e d b r o k e r c o mp e n s a t i o n p l a n s , " " co m p e t i t i v e b o n u s

p r o g r a m s , " " e x t r a c o m p e n s a t i o n a g r e e m e n t s , " " o v e r r i d e s , " a n d / o r " b o n u s e s . "



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D e s p i t e t h e n a m e o r t i t l e , t h e s e a g r e e m e n t s a r e k i c k b a c k s f r o m t h e I n s u r e r

D e f e n d a n t s t o t h e B r o k e r D e f e n d a n t s .

146 . T h e k i c k b a c k s f r o m t h e I n s u r e r D e f e n d a n t s h a v e g e n e r a t e d

s u b s t a n t i a l r e v e n u e s f o r t h e B r o k e r D e f e n d a n t s . I n 2 0 0 3 a l o n e , a p p r o x i m a t e l y

$ 8 0 0 mi l l i o n o f M a r s h ' s e a r n i n g s w e r e a t t r i b u t a b l e t o s o -c a l l e d " c o m mi s s i o n "

payments . Th a t y e a r , M a r s h o v e r a l l r e p o r t e d a p p r o x i m a t e l y $ 1 . 5 b i l l i o n i n n e t

income .

147 . U p o n i n f o r m a t i o n a n d b e l i e f , t h e k i c k b a c k a r r a n g e m e n t s a r e n o t

j u s t mo n e t a r y i n n a t u r e , b u t a l s o i n c l u de s t o c k i n t h e I n s u r e r D e f e n d a n t s a n d / o r

l o a n f o r g i v e n e s s o f i n t e r e s t a n d / o r p r i n c i p a l .

1 4 8 . Whatever the agreements were named, the agreements between

t h e B r o k e r D e f e n d a n t s a n d t h e I n s u r e r D e f e n d a n t s c r e a t e d a n i m p r o p e r i n c e n t i v e

f o r t h e B r o k e r D e f e n d a n t s t o s t e e r b u s i n e s s t o f a v o r e d i n s u r e r s a n d a w a y f r o m

d i s f a v o r e d i n s u r e r s .

1 4 9 . T h e B r o k e r D e f e n d a n t s s o l i c i t e d a n d o b t a i n e d f i c t i t i o u s h i g h

q uo t e s f o r I n s u r a n c e P r o d u c t s f r o m i n s u r a n c e c o m p a n i e s i n o r d e r t o de c e i v e t h e i r

c l i e n t s , i n c l u di n g P l a i n t i f f s , i n t o b e l i e v i n g t ha t t r u e c o mp e t i t i o n h a d t a k e n p l a c e .

150 . T h e B r o k e r D e f e n d a n t s p r o m i s e d t o p r o t e c t t h e I n s u r e r

D e f e n d a n t s f r o m c o m p e t i t i o n , a n d d i d s o .



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1 5 1 . T h e B r o k e r D e f e n d a n t s t h r e a t e n e d t o hu r t t h e b u s i n e s s o f t h o s e

i n s u r e r s w h o c o n s i d e r e d t r u l y co m p e t i n g f o r p a r t i c u l a r p l a c e m e n t s.

1 5 2 . A c e n t r a l p a r t o f t h e I l l e g a l S c h e m e o f t h e B r o k e r D e f e n d a n t s

h a s b e e n t o p r o mo t e t h e i n t e r e s t s o f i n s u r e r s w i t h w hi c h t h e y h a v e s o - ca l l e d

"commission" agreements .

153 . W h e n t h e B r o k e r D e f e n d a n t s s t e e r e d b u s i n e s s t o f a v o r e d

I n s u r e r D e f e n d a n t s , t h o s e i n s u r a n c e c o mp a n i e s , i n t u r n , p a i d t h e B r o k e r

Defendants higher "commissions . "

154 . W h e n t h e B r o k e r D e f e n d a n t s h e l p e d f a v o r e d I n s u r e r

D e f e n d a n t s r e t a i n t h e i r e x i s t i n g b u s i n e s s a t r e n e w a l t i m e , t h o s e i n s u r a n c e

c o m p a n i e s p a i d t h e B r o k e r D e f e n d a n t s h i g h e r " c o m m i s s i o n s ." The schem e

r e s u l t e d i n a d e f a c t o , i l l e g a l c us t o m e r a l l o c a t i o n c o n s p i r a c y b e t w e e n a l l

Defendants that was orchestrated and/or enfor ced by th e Broker Defendants .

1 5 5 . T h e B r o k e r D e f e n d a n t s a s s u r e d i n s u r e r s t h a t " c o m m i s s i o n "

a g r e e m e n t s m o r e f a v o r a b l e t o t h e B r o k e r D e f e n d a n t s w o u l d r e s u l t i n t h e B r o k e r

] D e f e n d a n t s s e l l i n g mo r e o f t h e i r I n s u r a n c e P r o d uc t s .

1 5 6 . T he B r o k e r D e f e n d a n t s m a de i t c l e a r t o i n s u r e r s t h a t , i f a n

i n s u r e r w i s h e d t o b e a w a r d e d a n y b u s i n e s s , i t w ou l d h a v e t o " p a y t o p l a y " b y

a g r e e i n g t o p a y a " c o mm i s s i o n " o r k i c k b a c k t o t h e B r o k e r D e f e n d a n t s .



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1 5 7 . The Broker Defendants rewarded employees for steering- and

a d m o n i s h e d e m p l o y e e s w h o f a i l e d t o s t e e r- b u s i n e s s t o f a v o r e d i n s u r e r s .

THE ILLEGAL SCHEME: INCREASED PREMIUMS

158 . T o f i n a n c e t h e s e a d d i t i o n a l i m p r o p e r " c o m mi s s i o n s , " a n d t o

c o m p e n s a t e t h e m s e l v e s f o r t h e r i s k o f t h e i r i l l e g a l a c t i v i t i e s , t h e I n s u r e r

D e f e n d a n t s i n c r e a s e d t h e p r e m i um s c ha r g e d d t o c l i e n t s , i n c l u di n g P l a i n t i f f s , f o r

I n s u r a n c e P r o d u c t s .

159 . Wh e n t h e B r o k e r D e f e n d a n t s ' c l i e n t s , i n c l u d i n g P l a i n t i f f s , p a i d

h i g he r p r e m i u m s f o r I n s u r a n c e P r o du c t s , t h e v o l u m e a n d p r o f i t a b i l i t y o f t h e

I n s u r e r D e f e n d a n t s ' b u s i n e s s r o s e , a g a i n i n c r e a s i n g t h e B r o k e r D e f e n d a n t s ' i l l e g a l

"commissions . "

THE ILLEGAL SCHEME: CONCEALMENT

1 6 0 . T h e B r o k e r D e f e n d a n t s c o n s i s t e n t l y c o n c e a l e d f r o m t h e i r

c l i e n t s , i n c l u di n g P l a i n t i f f s , t h e t r u e n a t u r e o f t h e s o - c a l l e d " co mm i s s i o n "

arrangements .

1 6 1 . A c c o r di n g t o t h e i r a g r e e m e n t s w i t h t h e i r c l i e n t s , i n c l u di n g

P l a i n t i f f s , t h e B r o k e r D e f e n d a n t s ' c o m p e n s a t i o n f o r t h e i r c o n s u l t i n g a n d b r o k e r a g e

s e r v i c e s g e n e r a l l y d e r i v e s f r o m ( a ) a f l a t f e e o r ( b ) c o mm i s s i o n s r e p r e s e n t i n g a

p e r c e n t a g e o f t h e p r e m i u m s p a i d b y t h e i r c l i e n t s .



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1 6 2 . W ha t t h e c l i e n t a g r e e m e n t s h a v e g e n e r a l l y n o t d i s c l o s e d , a n d

d i d n o t d i s c l o s e t o P l a i n t i f f s , i s t h a t t h e B r o k e r D e f e n d a n t s h a v e s e c r e t s i d e

a r r a n g e m e n t s w i t h t h e I n s u r e r D e f e n d a n t s , u n d e r w h i c h t h e B r o k e r D e f e n d a n t s

r e c e i v e d a d di t i o n a l s o - c a l l e d " c o m m i s s i o n s . "

163 . O n o c c a s i o n , t h e B r o k e r D e f e n d a n t s s t y l e d t h e i r " c o mm i s s i o n "

~ i r r a n g e me n t s w i t h t h e I n s u r e r D e f e n d a n t s a s p a y m e n t s f o r " s e r v i c e s ." Any such

s e r v i c e s w e r e n o n - e x i s t e n t o r m i n i m a l a n d di d n o t e x t e n d b e y o n d t h o s e s e r v i c e s

t h e B r o k e r D e f e n d a n t s w e r e a l r e a d y o b l i g a t e d t o p r o v i d e a s b r o k e r s f o r t h e i r

c l i e n t s .

164 . However th e "commission" agreements were characterized,

t h e y w e r e a v e h i c l e b y w hi c h t h e B r o k e r D e f e n d a n t s a n d t h e I n s u r e r D e f e n d a n t s

f u r t h e r e d t h e i r I l l e g a l S c h e m e .

165 . The "service" that th e Broker Defendants provided pursuant to

t h e s o - c a l l e d " c o m mi s s i o n " a r r a n g e me n t s w a s t o s t e e r b u s i n e s s t o t h e i n s u r e r

D e f e n d a n t s , t o r e d uc e p r i c e c o m p e t i t i o n f o r I n s u r a n c e P r o d uc t s , a n d t o i n c r e a s e

p r e m i u m s r e c e i v e d b y t h e I n s u r e r D e f e n d a n t s .



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THE ILLEGAL SCHEME: BIDRIGGING

166 . A s p a r t o f t h e i r I l l e g a l S c h e m e , t h e I n s u r e r D e f e n d a n t s c o l l u de d

w i t h t h e B r o k e r D e f e n d a n t s t o r i g b i d s a n d s u b mi t f a l s e q uo t e s t o u n w i t t i n g c l i e n t s ,

i n c l ud i n g P l a i n t i f f s .

167 . A common method for purchasing Insurance Products involves

t h e u s e o f r e q u e s t s f o r p r o p o s a l s ( " R FP s " ) b y a p r o s p e c t i v e c l i e n t t h r o u g h a b r o k e r

t o a g r o up o f i n s u r e r s . T he s u c ce s s f u l i n s u r e r w i l l t h e n e n t e r i n t o a c on t r a c t w i t h

t h e i n s u r e d c l i e n t t o p r o v i d e I n s u r a n c e P r o du c t s .

1 6 8 . Th e B r o k e r D e f e n d a n t s r e p e a t e d l y p r o v i d e d c l i e n t s w i t h f a l s e

a n d i n f l a t e d qu o t e s .

1 6 9 . T h e B r o k e r D e f e n d a n t s f r e q u e n t l y d e s i g n a t e d a w i n n e r , a n d

t h e n s o l i c i t e d i n f l a t e d b i d s f r o m o t h e r i n s u r a n c e c o mp a n i e s , i n c l u d i n g t h e I n s u r e r

D e f e n d a n t s , w h o p r o v i d e d s u c h b i d s , k n o w i n g t h a t l a t e r t h e y t h e m s e l v e s w o u l d

h a v e a t u r n t o g e t b u s i n e s s w i t h o u t m e a n i n g f u l c om p e t i t i o n .

1 7 0 . D e f e n d a n t s ' a c t i o n s a s s e t f o r t h a b o v e w e r e g r o s s , w a n t o n a n d

w i l l f u l , w e r e a i m e d a t t h e p u b l i c g e n e r a l l y , a n d i n v o l v e d a h i g h de g r e e o f m o r a l

c u l p a b i l i t y . D e f e n d a n t s ' c o n du ct a l s o w a s s p e c i f i c a l l y i n t e n d e d t o h a r m P l a i n t i f f s

a n d d i d , i n f a c t , c a u s e s u ch h a r m .



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THE ILLEGAL SCHEME : EFFECTS

1 7 1 . D e f e n d a n t s ' u n l a w f u l m a t e r i a l m i s r e p r e s e n t a t i o n s a n d

o m i s s i o n s , c o n t r a c t s , c o mb i n a t i o n s o r c o n s p i r a c i e s h a v e h a d a t l e a s t t h e f o l l o w i n g

e f f e c t s s i n c e t h e e a r l y 19 9 0 s :

a . Plaintiff s had to pay more f or Insurance Products th an

t h e y w o u l d h a v e p a i d i n a c o m p e t i t i v e m a r k e t p l a c e ,

u n f e t t e r e d b y D e f e n d a n t s ' a n d t h e i r c o - c o n s p i r a t o r s '

c o l l us i v e a n d u n l a w f ul a c t i v i t i e s ;

b . Price competition in th e sale of Insurance Products

w a s r e s t r a i n e d , s u p p r e s s e d a n d e l i m i n a t e d i n t h e

U n i t e d S t a t e s ; a n d

c . Plaintiffs h ave been injur ed and financially damaged

i n t h e i r b u s i n e s s a n d p r op e r t y , i n a m o un t s t h a t a r e

p r e s e n t l y u n d e t e r m i n e d .

THE ILLEGAL SCHEME : FRAUDULENT CONCEALMENT

172 . D e f e n d a n t s e n g a g e d i n s u c c e s s f u l , i l l e g a l , p r i c e - f i x i n g , b i d -

r i g g i n g a n d c us t o m e r a l l o c a t i o n c on s p i r a c i e s t h a t , b y t h e i r n a t u r e , we r e i n h e r e n t l y

s e l f - c o n c e a l i n g .



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4 1

1 7 3 . S i n c e t h e i n h e r e n t l y s e l f - c o n c e a l i n g c o n t r a c t s , c om b i n a t i o n s o r

c o n s p i r a c i e s w e r e k e p t s e c r e t b y D e f e n d a n t s , P l a i n t i f f s w e r e u n a w a r e o f t h e a n t i -

c o m p e t i t i v e a g r e e m e n t s .

174 . P l a i n t i f f s h a d n o k n o w l e d g e p r i o r t o t h e a n n o u n c e m e n t b y t h e

A t t o r n e y G e n e r a l o f t h e S t a t e o f N e w Y o r k o n O c t o b e r 1 4 , 2 0 0 4 , o f D e f e n d a n t s '

u n l a w f u l s e l f - c o n c e a l i n g c o n s p i r a c i e s .

175 . P l a i n t i f f s c o ul d n o t ha v e d i s c o ve r e d t h e i l l e g a l c on t r a c t s ,

c o n s p i r a c i e s o r c o mb i n a t i o n s a t a n e a r l i e r d a t e b y t h e e x e r c i s e o f r e a s o n a b l e

d i l i g e n c e b e c a u s e o f t h e d e c e p t i v e p r a c t i c e s , f r a u du l e n t c o n c e a l m e n t , a n d

t e c h n i q u e s o f s e c r e c y e m p l o ye d b y D e f e n d a n t s a n d t h e i r c o - co n s p i r a t o r s t o a v o i d

d e t e c t i o n o f t h e i r I l l e g a l S c h e m e .

1 7 6 . T h e i l l e g a l c o n t r a c t s , c o

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