Insurance Company in Spitzer Investigation
November 16, 2004
Cleary Gottlieb has been retained to represent the Audit Committee of the Board of Directors of ACE Ltd, an insurance company, in connection with investigations by New York State Attorney General Eliot Spitzer and other authorities. In Attorney General Spitzer’s recent civil suit against Marsh & McLennan, alleging that certain Marsh business practices were fraudulent and violated antitrust and securities laws, ACE was identified as one of four insurance companies whose employees participated in the practices in question. An underwriter in an ACE insurance subsidiary recently pleaded guilty to a misdemeanor based on these practices. Separately, ACE recently received subpoenas from the Attorney General and the SEC in connection with an investigation into non-traditional, or loss mitigation, insurance products. ACE is cooperating in the government investigations.