Marsh & McLennan Cos. has been named as a defendant in a securities fraud class action suit filed against Bermuda-based Axis Capital Holdings Ltd. according to a regulatory document filed last Thursday with the Securities and Exchange Commission.

In a securities fraud class action suit pending before the United States District Court for the Southern District of New York against Axis Capital Holdings Limited and certain of its officers, the plaintiffs filed a consolidated complaint that named MMC, among others, as an additional defendant, according to the SEC regulatory filing.

The world's largest insurance broker said it was served with process in this suit on June 6.

Marsh & McLennan's private equity unit MMC Capital Inc. formed Axis Capital Holdings to develop an additional source of insurance and reinsurance capacity after the September 11, 2001 terrorist attacks.

MMC Capital is a private equity firm that manages investments and committed capital of more than $2 billion.

Marsh said that the suit filed on May 13 is on behalf of all people and entities who purchased or acquired Axis Capital's publicly traded stock from August 6, 2003-October 14, 2004.

The suit alleges violations of federal securities laws in connection with the defendants' alleged failure to disclose alleged improper business practices concerning incentive commission payments by Axis, among others and Marsh Inc., another Marsh McLennan unit.

The brokerage said the lawsuit also alleges that various entities and partnerships managed by or associated with MMC Capital sold Axis Capital common stock to members of the group knowing of the alleged inflated valuation of such stock.

The filing did not specify the amount of damages being sought by the plaintiffs.

As of June 20 this year numerous lawsuits have been commenced against MMC, one or more of its subsidiaries, and its current and former directors and officers, relating to matters alleged in a lawsuit filed against Marsh by New York Attorney General Eliot Spitzer in his probe of practices in the insurance industry.

The regulatory filing said that 20 putative class actions purportedly brought on behalf of policyholders are now pending in various federal courts although most of these have or will be transferred to the District of New Jersey for co-ordination or consolidated pre-trial proceedings.

Six similar class or representative actions are pending in state courts. Two putative class actions are pending in Canada. There are also several actions brought by individual policyholders and additional suits may be filed by other policyholders, the brokerage said.

As of June 20, offices of attorneys general in 20 jurisdictions have issued one or more requests for information or subpoenas calling for the production of documents or for witnesses to provide testimony. Subpoenas, letters of inquiry and other information requests have been received from departments of insurance or other state agencies in 31 jurisdictions.

"MMC and its subsidiaries are co-operating with these requests from regulators," Marsh said in the filing.

The Australian Securities and Investments Commission (ASIC) has requested information and documents from insurers and brokers, including Marsh, as part of an examination of brokers' remuneration practices.

"It is possible that MMC or its subsidiaries could face administrative proceedings or other regulatory actions or penalties, including, without limitation, actions to revoke or suspend their insurance broking licenses," the regulatory filing said.