Aon Corporation (NYSE:AON) Investor Investigation Over Possible Wrongdoing By Certain Directors
San Diego, Feb. 6, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in Aon Corporation (NYSE:AON) shares was announced over possible breaches of fiduciary duties by certain directors and officers at Aon Corp. in connection with allegations of potential briberies by Aon Corp.
The investigation by a law firm focuses on possible shareholder claims based on potential breaches of fiduciary duties. Specifically the investigation concerns whether certain directors and officers at Aon Corp. breached their fiduciary duties in connection with allegations that the Company violated the Foreign Corrupt Practices Act ("FCPA").
In January 2009, Aon Limited, Aon’s principal U.K. brokerage subsidiary, entered into a settlement agreement with the Financial Services Authority (“FSA”) to pay a £5.25 million fine arising from its failure to exercise reasonable care to establish and maintain effective systems and controls to counter the risks of bribery arising from the use of overseas firms and individuals who helped it win business.
Recently the U.S. Securities and Exchange Commission (“SEC”) announced that Aon without admitting or denying will pay a total of approximately $14.5 million in disgorgement and prejudgment interest to the SEC. In a related action, Aon will pay a $1.764 million criminal fine to the U.S. Department of Justice (DOJ).
The SEC had alleged in a complaint against Aon Corp. that Aon Corp.’s subsidiaries made over $3.6 million in improper payments to various parties between 1983 and 2007 as a means of obtaining or retaining insurance business in those countries.
Aon Corporation reported that its annual Revenue rose from $7.35billion in 2008 to $11.28billion in 2011 and its Net Income rose from $706million in 2010 to $979million in 2011.
Despite increasing financial results shares of AON Corp currently traded below its highest trading in April 2011.
In fact shares of Aon Corporation (NYSE:AON) increased from as low as $36.24 in July 2010 to as high as $53.76 per share in April 2011. However NYSE AON shares dropped during 2011 as low as $40 per share in September and traded recently at slightly below $48 per share.