NEW YORK (Bloomberg) — Marsh & McLennan Cos., the world's largest insurance broker, was sued by a former executive who says the company used a state bid-rigging probe as an "excuse" to terminate him and failed to meet its severance obligations.In the suit, Roger Egan (pictured) says that shortly after he was asked to step down in November 2004 as president of the brokerage unit, he met with chief executive Michael Cherkasky and was told the company "would come up with a generous settlement". Cherkasky later refused to discuss that offer, says the suit, filed July 11 in New York State Supreme Court.

"This case is about fairness. Mr. Egan devoted 32 years to Marsh," said his lawyer, Peter Wang, in an interview yesterday. "He now seeks what Marsh promised to pay." The attorney didn't say how much money his client was seeking.

Mr. Egan is now the chief executive of Integro, a brokerage which he, Bermuda insurance legend Robert Clements and Peter Garvey founded two years ago. The suit says Marsh & McLennan demanded that Egan resign in the wake of a suit by Eliot Spitzer, then the attorney general of New York, accusing the company of rigging insurance bids. A press release issued by the company in November 2004 said Egan was "accountable" for an area of business probed by Spitzer, and the decision to ask him to step down was "not based on any suggestion of culpability".

Marsh & McLennan settled Spitzer's allegations in January 2005 for $850 million. The New York-based company didn't admit or deny wrongdoing in the settlement.

Mike Kachel, a spokesman for Marsh & McLennan, said policy is not to comment on pending litigation.

The stock climbed five cents to $31.25 in New York Stock Exchange composite trading. Shares are 32 percent below their price before Spitzer sued on October 14, 2004.