Gallagher Calls Alliant’s Filing in Poaching Suit a ‘Masterclass in Deflection’

In the latest in the back-and-forth court filings between Arthur J. Gallagher and Alliant Insurance Services, Gallagher said its competitor is putting on a “masterclass in deflection” to prevent the court from granting a restraining order against Alliant.

Late last month, Gallagher filed a lawsuit against Alliant for allegedly plotting to steal steal employees and clients. Eight female employees suddenly resigned over several days earlier in July in a move Gallagher called a “corporate raid” by Alliant. As part of the lawsuit, Gallagher is seeking a temporary restraining order against Alliant.

Alliant on August 3 filed its opposition to the restraining order. Alliant said the women separately decided to quit due to alleged “rampant sexism, discrimination, and unfair treatment” at Gallagher.

“Setting aside the falsity of those accusations, they are completely irrelevant,” Gallagher said in its response filed Friday in U.S. District Court in the Northern District of Illinois. “Inducing breaches of an employee’s contractual and fiduciary obligations is not somehow excused if that employee is unhappy with their current employer.”

Gallagher again asserted as it had in its lawsuit that other competitors have likewise sued Alliant. Gallagher has said Alliant faces more than 40 lawsuits in dozens of jurisdictions from other insurance brokers. In each case, according to Gallagher’s allegations, outgoing employees conspire with Alliant to act as “double agents” – allegedly continuing to collect a paycheck from competitors while acting in the interests of Alliant until the employees leave for positions at Alliant.

“What is more likely? That this is a coincidence, repeated dozens of times in dozens of jurisdictions, without any non-solicit violations by employees or inducement and encouragement from Alliant? Or, that Alliant is the ‘puppet master’ that tortiously ‘made the mass departures happen?'” reads Gallagher’s latest filing. “Alliant hopes this court will leave its common sense at the door in answering these questions.”

Gallagher said it needs the court to intervene before it suffers “irreparable harm,” and Alliant can accomplish its alleged goal of stealing enough business to pay for its litigation costs.

The case is Arthur J. Gallagher & Co. v. Alliant Insurance Services, Inc., 1:22-cv-03931, U.S. District Court, Northern District of Illinois.