Prosecutors drop appeal in Marsh bid-rigging case

NEW YORK—The New York attorney general’s office has dropped its appeal of a judge’s July decision to overturn the bid-rigging convictions of two former Marsh Inc. executives.

The state had appealed a July 2 decision by New York County Supreme Court Judge James A. Yates that tossed out the convictions of former Marsh Managing Directors William Gilman and Edward J. McNenney. In the opinion, the judge cited new evidence that “undermines the court’s confidence in the verdict,” including documents that weren’t disclosed at the time of the trial that would have proved “invaluable” to the defense as well as contradictory statements by witnesses who cooperated with prosecution.

The judge’s action capped a series of failures by prosecutors targeting individual brokers named in 2004 Spitzer investigations of alleged bid-rigging and other practices by brokers and insurers.

The appeal was withdrawn in a document signed Dec. 13 by New York attorney general and Governor-elect Andrew Cuomo and attorneys for Messrs. Gilman and McNenney. The document did not state the reason for the state’s action.

Meanwhile, Messrs. Gilman and McNenney sued Marsh in late October, accusing their former employer of violating federal law and breach of contract, claiming it had fired them without cause and had not paid them severance to which they were contractually entitled.