Arthur J. Gallagher & Co.

Itasca, IL: A class action lawsuit was filed against the insurance broker in response to the firm's controversial contingency fees. The suit was filed on behalf of current and former clients that used any one of Gallagher's brokers to purchase retail insurance from 1994 to 2005. The suit claimed Gallagher violated the Illinois Consumer Fraud and Deceptive Business Practices Act and breached fiduciary duty. Gallagher admitted no wrongdoing, but has agreed to distribute $28.0 million to current and former clients and will also pay $8.85 million in plaintiff's attorney fees. (Dec-29-06) [INSURNACE NEWS: GALLAGHER SETTLEMENT]