Marsh files poaching suit against Alliant, former surety execs

Marsh USA LLC sued Alliant insurance Services Inc. and two former commercial surety executives for allegedly conspiring to raid its commercial surety team and recruit clients.

In the lawsuit, Marsh USA LLC v. Alliant Insurance Services Inc. et al., the broker says the case is “yet another chapter in Alliant’s execution of its corporate strategy of theft.”

“Alliant’s formula is by now well-known: identify a top producer with valuable client relationships; dangle an outsized compensation package tied directly to how much business he can steal; then orchestrate a wholesale lift-out of the producer’s team and book — legal obligations be damned,” Marsh says in its lawsuit, filed in federal court in New York.

Glenn Pelletiere, Marsh’s Northeast Zone Surety Leader, and his second-in-command, Colin Horgan, abruptly resigned Jan. 24 to join Long Beach, California-based Alliant. On Feb. 10, two other members of the commercial surety team resigned to join the rival broker, court records show.

Alliant announced Feb. 20 that it had hired Mr. Pelletiere.

Marsh says Alliant’s plan to use its former executives to recruit clients came to fruition March 28, when Marsh got a notice from one of its largest surety clients that it was taking its business with Alliant.

Marsh alleges that its former executives breached the confidentiality, noncompete and nonsolicitation provisions of their employment agreements. The broker also alleges that Alliant tortiously interfered with their contracts.  

Marsh wants injunctive relief as well as direct and consequential damages.

A Marsh spokesperson declined to comment. Representatives of the defendants did not respond to requests for comment.