Liberty Mutual Settles Bid-Rigging Allegations

HARTFORD, Conn. -- Liberty Mutual has agreed to a multimillion-dollar settlement to resolve allegations that it rigged bids and paid kickbacks to agents who steered customers to its insurance products.

Boston-based Liberty Mutual agreed to pay $2 million to Connecticut and $5.5 million to New York as part of the settlement.

Connecticut Attorney General Richard Blumenthal announced its part of the settlement Thursday.

It stems from his 2006 lawsuit with former New York Attorney General Eliot Spitzer against the company, part of a nationwide investigation into bid-rigging in the insurance industry.

Liberty Mutual confirmed the settlements but said it did nothing wrong and was happy to put the matter to rest.