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YSU to get settlement funds
By GRACE WYLER
Youngstown State University will receive a payment from American International Group as part of the insurance giant’s $9 million settlement with the Ohio Attorney General.
Attorney General Richard Cordray announced the settlement Wednesday and said that more than $3 million will go toward reimbursing the 26 public entities represented in the antitrust lawsuit, including YSU.
The suit alleges that from 2001 to 2004 AIG conspired with insurance broker Marsh & McLennan to produce fictitious quotes to give customers the false impression that competitive bidding had resulted in the best possible insurance rates.
AIG denies any wrongdoing.
Wednesday’s settlement is significant because it sets a precedent that the attorney general will enforce the state’s antitrust laws.
“The principle at stake is that if competitors get together to divide up markets, that is illegal,” Cordray said. “We will pursue them aggressively under Ohio antitrust laws.”
YSU will receive $27,372 from AIG, or 10 percent of the cost of commercial casualty-premiums paid between March 2001 and March 2004. The largest beneficiary, Ohio State University, will receive $1,235,787.
“We certainly want to applaud the efforts of the Ohio Attorney General’s office in pursuing this case,” said Ron Cole, a spokesman for YSU. “We thank Attorney General Cordray for his efforts in recovering these funds.”
The money will go into the university’s general fund, Cole said.
The attorney general’s office continues to pursue the antitrust suit against Marsh & McLennan, Cordray said. Other defendants include ACE American Insurance Company, the Chubb Corporation and Hartford Financial Services Group.
“We continue to feel confident that we have a strong case,” Cordray said. “We think today’s settlement is significant and will help us continue to pursue these cases.”