Marsh & McLennan in $850 Million Insurance Settlement

Updated from 9:43 a.m. EST

Marsh & McLennan(MMC Quote) is setting up an $850 million restitution fund as part of a settlement with New York Attorney General Eliot Spitzer over allegations the firm engaged in an illegal insurance industry kickback and bid-rigging scheme.

The settlement is one of the largest reached by Spitzer during his three-year campaign against corporate wrongdoing.

The settlement comes nearly four months after Spitzer filed civil fraud charges against Marsh in a sweeping investigation into abuses in the insurance industry. Spitzer charged that Marsh's big insurance broker division was at the forefront of an industrywide conspiracy that had driven up prices for insurance products for corporations and consumers. ...