We previously reported on Hawaii’s settlement with Travelers in a suit filed in Florida. Pacific Business News and the Honolulu Advertiser report that Hawaii and eight other states and the District of Columbia have settled its claims in the same suit against American International Group Inc. AIG will pay Hawaii $12.5 million.
The suit challenges a “pay-to-play” tactic used by Marsh & McLennan and other insurance brokers. AIG and several of its subsidiaries allegedly conspired with March and other brokers by submitting fake bids to create the illusion of a competitive bidding process.
