Firm Files Class Action Against The Hartford Group Over 'Bid-Rigging' and 'Contingent Commissions' Scandal
COLCHESTER, CT, October 21, 2004 -- Scott + Scott, LLC (HartfordGroupLitigation@scott-scott.com or nrothstein@scott-scott.com), a law firm based in Connecticut with offices in Chagrin Falls, Ohio and San Diego, California (http://www.scott-scott.com) filed a class action in the United States District Court for the District of Connecticut on behalf of purchasers of The Hartford Financial Services Group, Inc. ("Hartford Financial") (NYSE:HIG) publicly traded securities during the period between November 5, 2003 and October 13, 2004 (the "Class Period").
The complaint alleges that during the Class Period defendants disseminated materially false and misleading financial statements. The true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) that the Company was paying illegal and concealed "contingent commissions" pursuant to illegal "contingent commission agreements;" (b) that by concealing these "contingent commissions" and "contingent--commission agreements" the defendants violated applicable principles of fiduciary law, subjecting the Company to enormous fines and penalties totaling potentially tens, if not hundreds, of millions of dollars; and (c) that as a result, the Company's prior reported revenue and income was grossly overstated. The complaint charges Hartford Financial and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Hartford Financial is a diversified insurance and financial services company. Through its subsidiaries, the Company provides investment products and life and property and casualty insurance to both individual and business customers in the United States and internationally. Hartford stock plunged from over $64 a share to close yesterday at $54.61.
Attorney General Eliot Spitzer sued the nation's leading insurance brokerage firm, Marsh & McLennan Companies (NYSE:MMC), alleging that it steered unsuspecting clients to insurers with whom it had lucrative payoff agreements, and that the firm solicited rigged bids for insurance contracts (the stock plunged from over $46 per share to close at 24.10 yesterday). Scott + Scott, LLC is investigating claims on behalf of investors and others who might have been the victims of antitrust violations and ERISA (pension/401k) violations. This investigation addresses certain major insurance brokerage service providers (including Marsh & McLennan, Aon, ACE Ltd., AIG (NYSE:AIG), which stock plunged from over $72 per share to close at 57.60 yesterday; Willis Group Holdings, Acordia, HLF Group, Jadine Lloyd Thompson, Alexander Forbes, Hilb, Rogal & Hamilton, Brown & Brown, Arthur J. Gallegher, Hartford and Munich American Risk Partners and others) and a long-standing pattern of deceptive and improper business practices surrounding the provision of what is commonly referred to as "global broking" services.
Scott + Scott, LLC, a Connecticut-based law firm with offices in Ohio and California, is a law firm with a national practice and reputation. Scott + Scott dedicates itself to client communication and satisfaction. The firm is currently litigating major securities, antitrust and employee retirement plan cases throughout the United States and represents pension funds, charities, foundations, individuals and other entities worldwide -- in both class and non-class cases. Please visit our website at http://www.scott-scott.com to learn more about the firm, its practice and other cases. If you wish to discuss this action with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein at nrothstein@scott-scott.com or by calling 800-404-7770 (EDT) or 800-332-2259 (PDT). You can dial direct in California at 1/619-233-4565. Scott + Scott, LLC is located at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432. This release is issued in accordance with the applicable federal law of the United States.
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