Brown & Brown, Inc. (BRO) filed a lawsuit on December 25, 2025, accusing former executives of orchestrating a holiday‑season poaching campaign that targeted 200 of the brokerage’s employees. The complaint names former leaders Don McGowan, Eric Kasen and Justin Kesner as defendants and alleges that the mass resignations began on December 18, 2025, a week before the holiday break.
The lawsuit claims the ex‑executives deliberately timed the poaching to coincide with the holiday season, a period when many employees are on leave and court access is limited. The complaint seeks damages for the loss of personnel and the potential disruption to Brown & Brown’s operations, and it highlights the company’s reliance on a decentralized agency model that could be severely impacted by the sudden departure of 200 workers.
Brown & Brown’s most recent quarterly results provide context for the potential impact of the lawsuit. In Q3 2025 the brokerage reported revenue of $1.6 billion, up 35.4 % year‑over‑year, and an adjusted earnings per share of $1.05. The operating margin fell to 19.4 % from 26.7 % in the prior year, reflecting margin compression driven by integration costs from recent acquisitions and higher debt servicing. The company’s Q4 2024 revenue of $1.2 billion, up 15.4 % YoY, and an adjusted diluted EPS of $0.86 illustrate a trend of strong top‑line growth that is increasingly supported by M&A rather than organic expansion.
The loss of 200 employees—many of whom are likely key agents or specialists—could disrupt client service, delay policy processing, and increase the cost of recruiting and training replacements. In addition, the lawsuit introduces legal costs and the risk of a sizable settlement or judgment, which could further strain the company’s already compressed margins. Reputational damage is also a concern, as the allegations may erode client confidence and employee morale, potentially accelerating turnover and affecting the brokerage’s competitive position.
Brown & Brown’s legal challenges are part of a broader trend of talent wars in the insurance brokerage industry. The company previously settled a similar poaching lawsuit with AssuredPartners in 2017 for $20 million, and it has faced other litigation involving former executives. Coupled with its aggressive acquisition strategy—most notably the $4.3 billion purchase of AssuredPartners—Brown & Brown is navigating a complex environment where margin compression, integration costs, and talent retention are key headwinds. The current lawsuit adds another layer of uncertainty to an already challenging operating landscape.
As of the filing date, Brown & Brown has not issued a formal response to the allegations. The company’s next steps will likely involve defending the claims, assessing the potential financial impact, and communicating with stakeholders to mitigate reputational risk. Investors and clients will be watching closely for any updates on the lawsuit’s progress and the company’s strategy to address the workforce disruption.
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