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Insurance industry

Aon Corp. Faces Investigation for Securities Law Violations

Strategic Insights

— 2 min read

Aon Corp., a leading provider of risk management services, is facing a Securities and Exchange Commission (SEC) investigation for potential violations of securities laws and Employee Retirement Income Security Act of 1974 (ERISA). The investigation comes on the heels of New York Attorney General Eliot Spitzer's lawsuit against Marsh & McClennan, which accused the company of steering business to insurers in return for fees. Aon's handling of investments in its employee retirement benefit plan is also under scrutiny, with concerns that the company may have breached its ERISA-mandated fiduciary duties.

Key Takeaways:

  • Emerson Poynter LLP, a Houston-based law firm, has commenced an investigation into Aon Corp.'s practices related to its employee retirement benefit plan.
  • The investigation focuses on potential violations of federal and state securities laws and ERISA, including allegations that Aon failed to disclose hundreds of millions of dollars in profits derived from "contingent commissions" and special payments from insurance companies.
  • Aon's stock price has fallen since New York Attorney General Eliot Spitzer filed suit against Marsh & McClennan and announced an investigation of Aon and others.
  • Credit rating agencies, such as Moodys Investor Services, have downgraded the debt rating of Aon Corp.
  • Emerson Poynter LLP has substantial experience representing plan participants in ERISA actions and investors in shareholder lawsuits, having represented clients in cases such as Enron, Reliant Energy, and Goodyear.
  • The firm has offices in Houston, Texas, and Little Rock, Arkansas, but represents clients throughout the nation.
  • If you purchased Aon stock before October 14, 2004, or are a member of one of Aon's retirement plans and purchased or held Aon stock through the retirement plans, please contact Emerson Poynter LLP by calling toll-free at 800.663.9817 or via e-mail at epllp@emersonpoynter.com.

Statistics:

  • Aon's stock price has fallen since New York Attorney General Eliot Spitzer filed suit against Marsh & McClennan and announced an investigation of Aon and others. (No specific percentage or dollar amount provided)
  • Emerson Poynter LLP has a significant track record of representing plan participants in ERISA actions, having represented clients in cases such as Enron (resulting in a $1 billion+ settlement), Reliant Energy, Goodyear, Cardinal Healthcare, and ADC Telecommunications. (No specific number of clients or cases provided)
  • Credit rating agencies, such as Moodys Investor Services, have downgraded the debt rating of Aon Corp. (No specific rating or timeframe provided)

Sources:

  • Emerson Poynter LLP
  • New York Attorney General Eliot Spitzer
  • Marsh & McClennan
  • Moodys Investor Services
  • COMTEX (http://www.comtexnews.com)

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