New York attorney general Eliot Spitzer has filed a bidrigging lawsuit against property/casualty insurer Liberty Mutual Group Inc., charging the private company made payoffs to insurance brokers to steer business its way. The civil complaint was filed in State Supreme Court in Manhattan, Spitzer's office said in a statement. However, Liberty Mutual Insurance Group has decided to fight the allegations of anti-competitive practices.

The Boston-based insurer is insisting that charges regarding improper commissions and bid-rigging are untrue and overblown and says it is willing to go to court to defend itself and its practices rather than settle with the two states.

After two years of negotiations, Liberty Mutual said it has been unable to reach a resolution and believes the states' settlement demands have been excessive.

"We have tried to reach resolution and can only describe their settlement demands as excessive and unreasonable: both in terms of magnitude and in their demands that we change legitimate business practices in states outside their legal jurisdictions," the company said.

"We have declined these demands and are preparing to resolve the issues in court."