Liberty Mutual Settles Kickback Claims For $7.5M

Law360, New York (January 3, 2011, 7:35 PM EST) -- Liberty Mutual Insurance Co. on Monday announced it would pay $7.5 million to settle bid-rigging and kickback claims from New York and Connecticut officials.

The Boston-based insurer will pay $5.5 million to the state of New York and $2 million to Connecticut to settle the allegations.

Former Connecticut Attorney General Richard Blumenthal announced the $2 million settlement Thursday. In a 2006 lawsuit, Blumenthal alleged that the insurer paid so-called contingent commissions, or undisclosed kickbacks, to insurance brokers in exchange for those brokers purchasing insurance contracts from...
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