LOS ANGELES, Nov. 11, 2004 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Northern District of Illinois on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Aon Corporation ("Aon" or the "Company")(NYSE:AOC) between October 31, 2002 and October 22, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Aon and certain of the Company executive officers with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning Aon's operations and financial performance artificially inflated the Company's stock price, inflicting damages on investors. Aon is an insurance services holding company, comprising insurance brokerage, consulting, warranty and consumer insurance companies. The Complaint alleges that, unbeknownst to investors, defendants engineered an illegal scheme for Aon to steer business to favored insurance companies in exchange for lucrative contingent commissions. In collusion with preferred insurance carriers, Aon routinely orchestrated illusory bidding competitions in which it would designate a winner first and then urge other favored insurance companies to submit inflated bids with the understanding that Aon would make similar favorable arrangements for the "losing" bidders in subsequent competitions. Aon presented clients with these inflated quotes to create the appearance of a fair bidding competition. The complaint alleges defendants failed to disclose that a material portion of Aon's revenues were derived from illegal bid rigging and kickback schemes which subjected the Company to the risk of regulatory penalties, potential criminal and civil liability, and the loss of goodwill among its clients, thereby compromising the Company's financial condition and future business prospects.
On October 14, 2004, New York Attorney General Eliot Spitzer issued a press release headlined "Investigation Reveals Widespread Corruption in Insurance Industry,'' announcing his filing of an action in New York state court against insurance broker Marsh & McLennan Cos. and two executives for bid rigging and for collecting fees to steer business to insurers pursuant to "contingent commission" agreements. The press release described wide-anging fraud and improper conduct within the insurance industry. In response to this announcement, and widespread media coverage which sent shockwaves throughout the insurance industry, the price of Aon common stock dropped dramatically, falling 16% in one day.
On October 15, 2004, The Wall Street Journal reported that Aon was a target of Mr. Spitzer's probe, having been served with a subpoena for documents related to its contingent commission agreements. Numerous similar articles, highlighting the corruption alleged in Mr. Spitzer's complaint, were subsequently published, causing Aon's stock price to decline further. On October 22, 2004, Aon issued a press release announcing that "it is eliminating its practice of accepting contingent commissions from underwriters." Aon's stock closed at $19.35 on October 22, 2004, 30% below its closing price prior to the breaking of the scandal.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than December 24, 2004, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.