AJG & Towergate settle legal dispute
Arthur J Gallagher (AJG) is set to receive a £20 million settlement over its legal dispute with David Ross, the former chief executive officer (CEO) of AJG International, and others.
Towergate will pay £4 million in August 2015 and £4 million in April 2016 for the termination of all litigation proceedings. Highbridge Capital will pay the additional £12 million.
As part of the settlement, AJG has agreed to the early release of David Ross, who will join the Towergate on November 1, 2015 as CEO, subject to the usual regulatory approvals.
Additionally, Adrian Brown, AJG’s former executive chairman of underwriting and distribution, and Sarah Dalgarno, the previous chief risk officer of AJG International, will be released from AJG on September 2, 2015.
In March 2015, Ross left AJG to become CEO of Towergate in February, sparking a number of senior desertions to Towergate in fast succession.
John Tiner, Towergate chairman, said: “I am very pleased that a settlement has been agreed between a number of incoming executives and Gallagher, bringing much needed clarity to the management of the Towergate business.
“With all of these appointments alongside our existing leaders we will have an outstanding executive team, whom I am confident will lead the business to sustained success in the future.”
