NEW YORK, Nov. 16, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces a class action lawsuit on behalf of purchasers of the securities of Aon Corporation ("Aon" or the "Company") (NYSE:AOC) between October 31, 2002, and October 18, 2004, inclusive (the "Class Period").
The complaint alleges that defendants' publicly disseminated Class Period statements were materially false and misleading because, unbeknownst to investors, Aon engaged in an illegal scheme engineered by defendants 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 the fictitious high quotes from the insurance companies to create the appearance of a fair bidding competition. Thus, the complaint alleges, Aon's Class Period representations regarding its performance were materially false and misleading because, among other reasons, they failed to disclose that a material portion of defendants' revenues were derived from illegal bid rigging and kickback schemes that was inherently unsustainable and which subjected the Company to a serious risk of regulatory penalties, potential criminal and civil liability, and the loss of goodwill among its clients, thereby compromising the Company's overall financial condition and prospects for future business.
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 rigging bids and collecting fees from insurers for steering business their way, pursuant to "contingent commission" agreements. The civil complaint accuses the defendants of engaging in fraudulent business practices, antitrust violations, securities fraud, unjust enrichment and common law fraud. The press release described wide-ranging fraud and improper conduct within the insurance industry. In response to this announcement, and widespread media coverage of the action, which sent shockwaves throughout the insurance industry, the price of Aon common stock dropped dramatically, falling 16% in one day, from a closing price of $27.66 per share on October 13, 2004 to a closing price of $23.18 per share on October 14. 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, and the fruits of their own investigations, were published since then, causing Aon's stock price to decline further. On October 22, 2004, SmartMoney reported that Mr. Spitzer's office criticized Aon for "dragging its feet" in complying with the investigation. Also that day, 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.
If you purchased or otherwise acquired Aon securities on any exchange between October 31, 2002, and October 18, 2004, and sustained damages, you may, no later than December 24, 2004, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca