Another Law Firm Files ERISA Class Action Lawsuit

Goodkind Labaton Rudoff & Sucharow LLP filed a lawsuit pursuant to the Employee Retirement Income Security Act of 1974 on October 22, 2004 in the United States District Court for the Southern District of New York, on behalf of persons who, as of October 14, 2004, were participants in or beneficiaries of one or more of the retirement plans offered by Marsh & McLennan Companies, Inc.

The Plaintiff alleges that fiduciaries of the retirement plans breached their duties to Plaintiff and to the other participants in the plans in violation of ERISA, particularly with regard to the retirement plans' holdings of Marsh stock. Each of the retirement plans maintained significant holdings in Marsh stock and/or required participants' investments to be held, in whole or in part, in Marsh stock.

According to a press release from Goodkind Labaton Rudoff & Sucharow, "the defendants acts were especially egregious given the Company's business practices. In order to make customers believe that Marsh had received 'bids' from various insurance companies in attempt to get the lowest possible price and most favorable terms for the customer, Marsh allegedly 'rigged' bids by asking certain insurance companies to bid higher than the company to which Marsh had already determined to steer the customer's business. Marsh's alleged 'bid rigging' schemes were not only in direct conflict of interest with Marsh's customers, but were fraudulent and illegal, and have opened the Company up to massive civil and criminal liability, lost future revenues, tarnished reputation, potential inability to borrow, and potential loss of customers."

The complaint also alleges that the "defendants knew or should have known that Marsh stock was an imprudent investment alternative for the Plans due to the improper business practices at the Company and the overwhelming risk that the Plans assumed by holding Company stock in such large, concentrated amounts. Defendants are liable under ERISA to restore losses sustained by the Plans and Participants as a result of defendants' breaching their fiduciary obligations to (i) monitor the Company's administrators and to provide them with accurate information; (ii) provide complete and accurate information to the Participants; (iii) avoid conflicts of interest; and (iv) diversify Participants' investments."

Rick Meigs, President, 401khelpcenter.com, LLC