Marsh & McLennan Agency sues Alliant for poaching brokers, clients

Marsh & McLennan Agency LLC on Monday sued Alliant Insurance Services Inc. and three former brokers in federal court in New York, saying Alliant conspired with the individuals to breach confidentiality and nonsolicitation agreements prior to their abrupt resignations Dec. 16.

The White Plains, New York-based unit of Marsh & McLennan Cos. Inc. said in the lawsuit, Marsh & McLennan Agency LLC v. Alliant Insurance Services Inc., that Alliant is no stranger to raiding brokers from its competition and has been the subject of numerous lawsuits and injunctions.

Johnny Osborne, Rachel Murray and Margaux Stone each worked at MMA’s Huntsville, Alabama, office. Mr. Osborne managed a book of business that generated roughly $1.6 million in annual revenue for MMA, and Ms. Murray and Ms. Stone were members of his team, court records show.

Beginning in October, Mr. Osborne would go to his office to remove documents, according to the lawsuit.

On Dec. 14, the office manager of the Hunstville location saw surveillance footage of Mr. Osborne removing boxes from his office; when the office manager inspected Mr. Osborne’s office, he discovered that the room was completely empty, the suit states.

Within 24 hours of his departure, at least four of Mr. Osborne’s clients had elected to move their business to Newport Beach, California-based Alliant, and by the end of that week the number had risen to at least 16, according to the suit.

MMA contends the former employees breached their employment agreements and violated the Defend Trade Secrets Act.

The brokerage also accuses Alliant of conspiracy and tortiously interfering with its contracts. MMA is seeking an injunction barring the former brokers from continuing to breach their confidentiality and nonsolicitation agreements.

Representatives for the parties did not respond to requests for comment.