Insurance broker Marsh & McLennan Agency told a New York federal court that its competitor carried out a coordinated scheme to poach an experienced employee with a roster of high-value clients to bulk up its recently launched yacht insurance practice.

In a complaint filed Tuesday, Marsh says former employee Kathleen Johnson breached a non-solicitation and confidentiality agreement and, together with Alliant Insurance Services Inc., misappropriated Marsh's trade secrets in violation of the Defend Trade Secrets Act.

Marsh, which provides risk management services for large, high-value private vessels, says Alliant launched its own yacht insurance practice this year.

"Rather than invest the time, expertise, and resources necessary to build such a practice lawfully, Alliant chose the shortcut that has triggered more than seventy lawsuits in the last decade," Marsh says. Alliant "targeted a competitor's practice, its confidential information, and a key employee who could deliver those client relationships to Alliant."

In this case, that key employee was Johnson, who joined Marsh's yacht practice in 2003 and was promoted to yacht specialty manager in July 2024, before her departure in August.

"Alliant recruited Johnson for her access to the clients and confidential information that Marsh had spent decades developing," Marsh alleges.

When Johnson joined Marsh, she signed a nonsolicitation and confidentiality agreement, agreeing not to solicit any of Marsh's clients or employees for two years following her separation from the company, the complaint says. She also agreed not to divulge Marsh's confidential information and trade secrets either during her employment or after.

Alliant recruited Johnson, one of the most senior yacht specialists in the industry and at Marsh, even though the company knew she was bound by post-employment restrictive covenants, which are standard in the insurance brokerage industry, Marsh contends.

Marsh alleges that Johnson, while she was still employed at Marsh, secretly coordinated with Alliant, concealed that she accepted an offer to join the rival company, provided Alliant with confidential information about Marsh's clients, and assisted Alliant in identifying additional March personnel for recruitment.

One of the Marsh employees she identified was Bryan Kunnemann, who left Marsh for Alliant shortly after Johnson, the complaint says.

"Within weeks, multiple long-standing MMA yacht clients for whom Johnson had been responsible submitted broker-of-record letters naming Alliant as their new broker," Marsh says. The company contends that Alliant has a decade-long history of growing its business by poaching its competitors' employees and using them to capture its competitors' clients.

"Alliant undertakes its raids with full awareness that its conduct is unlawful and will result not only in litigation but in the payment of damages," Marsh says. "Courts have already found that Alliant builds these expected losses into its business model from the outset."

The company alleges that Johnson not only breached the non-solicitation and confidentiality agreement, but also her duties of loyalty and utmost good faith to the company by acting in Alliant's interests while still employed by Marsh. Alliant knowingly participated in said breaches, Marsh says.

Alliant tortiously interfered in Marsh's contracts with Johnson by enticing her to breach her contractual obligations to her former employer, the complaint says, adding that together, Alliant and Johnson also intentionally and improperly interfered with Marsh's client relationships.

In addition to seeking direct, consequential and punitive damages and attorney fees, Marsh says it is entitled to an order preventing Johnson from committing additional violations of the non-solicitation and confidentiality agreement and extending the length of restrictions under the agreement. Marsh says it is also entitled to recover any compensation that it paid to Johnson during the alleged period of disloyalty.

Representatives of the parties did not immediately respond to requests for comment Wednesday.

MMA is represented by David W. Garland and A. Millie Warner of Epstein Becker & Green PC.

Counsel information for Alliant and Johnson was not available.

The case is Marsh & McLennan Agency LLC v. Alliant Insurance Services Inc. et al., case number 1:25-cv-09837, in the U.S. District Court for the Southern District of New York.