Connecticut, Illinois & New York v. St. Paul Travelers
Plaintiff states charged St. Paul Travelers with illegal business steering, customer allocation, and bid rigging in the market for small business. The states alleged, and St. Paul Travelers did not deny, that millions of dollars in “contingent commissions” were paid to a number of brokers who “steered” business to St. Paul Travelers. Under the customer allocation scheme, Travelers was one of the insurers (with The Hartford and CNA) who secretly agreed with a broker to divide up the brokers small business customers in exchange for paying greater undisclosed contingent commissions to the broker.
New York ex rel. Spitzer v. Hartford Financial Services Group
Agreement between CT, NY and Hartford in which Hartford agreed to pay $20 million in restitution and fines, and implement reforms designed to bring fair play and transparency to the marketing of retirement products. Agreement resolved charges that insurance companies were making secret payments to insurance brokers to recommend group annuities to pension plans.
New York v. UBS Financial Services
Suit charged UBS with violations of state anti-fraud laws, as well as common law fraud and breaches of fiduciary duty by falsely promoting InsightOne as providing personalized advice and other financial planning services and pushing unsuited customers into InsightOne.
In re Prudential Settlement
Prudential agreed to eliminate the payment of contingent commissions to brokers on group insurance products and provide full disclosure of broker compensation to employers who seek to purchase insurance for their employees through Prudential. Prudential will also provide restitution of $16.5 million to policyholders and pay civil penalties totaling $2.5 million.
New York v. Brown, No. 88-1512, (D.N.J) 721 F.Supp 629 (D.N.J.), summ. judg. den; 721 F.Supp 644 (D. NJ),
The New York Attorney General’s Office brought a suit against New Jersey officials that challenged the constitutionality of a New Jersey regulation that prevented the sale of milk below cost. The regulation was repealed in 1990.
New York v. Tele-Communications Inc., 1993 WL 527984 (S.D.N.Y. Sept. 14, 1993), 1993-2 Trade Cases P 70, 404
Defendant cable system operators, subsidiaries and a satellite cable supplier formed a monopoly in restraint of trade in the delivery of multichannel subscription television programming.
New York v. Liberty Mutual Holding Company, Inc., No. 06 401726, NY S, Ct.
Charges four-year pervasive bid-rigging and anti-competitive customer allocation scheme, in exchange for illegal payments. In 2010, Liberty Mutual agreed to pay $5.5 million to NY and $2 million to Connecticut to settle the allegations.
In the Matter of GlaxoSmithKline, PLC (Augmentin)
States alleged that GlaxoSmithKline fraudulently obtained patent protection for Augmentin and then delayed generic entry through sham patent litigation. Through this conduct, GlaxoSmithKline unlawfully maintained its monopoly over Augmentin. A $3.5 million multistate settlement for state proprietary claims was entered into by the participating states and GlaxoSmithKline.
In Re Relafen Antitrust Litigation
States sued manufacturer of antidepressant Relafen, alleging patent misuse and sham litigation designed to prevent generic entry. Parties settled the state proprietary claims for $10 million.
New York v. Facsimile Communications Industry, Inc. d/b/a/ Atlantic Business Products, Inc., No. 402299/03 (Sup. Ct. N.Y. County 2002)
Atlantic Business Products and Candle Business Systems entered into a customer allocation agreement that had a negative effect on the retail copier market. Candle plead to the criminal charges and entered into a settlement resolving the civil action.
