In re Marsh ERISA Litigation
In response to an ERISA class action lawsuit brought by participants in the Marsh & McLennan Companies, Inc. Stock Investment Plan, O'Melveny & Myers LLP engaged Analysis Group to support the defendant against allegations that it breached its fiduciary duties. The plaintiffs contended that the defendant violated ERISA by failing to prudently manage the investment plan's assets, neglecting to monitor the performance of their fiduciary appointees, and permitting the plan to hold large quantities of allegedly risky company stock. The plaintiffs insisted that the defendant knew or should have known that Marsh & McLennan and/or its wholly owned subsidiaries were engaging in activities, such as bid rigging and price fixing, that artificially inflated the value of the company's stock to the detriment of plan participants.
An Analysis Group team led by Co-Founder Bruce Stangle and including Vice President Ahmer Nabi assessed investments in Marsh & McLennan stock during the period in question. They examined the equity analyst coverage on the stock, institutional holdings in the stock, and new institutional investment in the stock. The team also assessed potential damages owed to the plan based on an allocation of the participants' assets to the most appropriate or reasonable investment option instead of company stock. In determining damages, the team considered potential changes to Marsh & McLennan's matching contributions to the plan if the company's stock was not available as an investment option in the plan.
Both parties agreed to settle the matter.