UnitedHealth Group Inc To Settle Two Class Action Lawsuit Related To The Stock Option Practices.
The leading health insurer UnitedHealth Group Inc has today decided to settle the two class action lawsuits against them. The company has decided to pay a sum of over $900 million to settle two lawsuits related to the historical stock option practices.
At a press conference the UnitedHealth Group has declared that it will pay $895 million to settle the first lawsuit and $17 million to settle the second, the Employee Retirement Income Security Act (ERISA) class action suit.
It is worthwhile to mention that the lead plaintiff in the first suit was the California Public Employees’ Retirement System, the largest pension fund in the United States. To recall, the lawsuit was filed against the UnitedHealth Group way back in 2006. The lawsuit claimed that the investors were hurt because UnitedHealth and its then-chairman and chief executive, William McGuire, did not grant stock options when they said they did in the late 1990s and early 2000s. McGuire stepped down, and UnitedHealth was forced to restate profits back to 1994 by $1.5 billion before taxes.
To conclude, the authority of the UnitedHealth Group Inc in a statement, says it admits no wrongdoing and the settlements resolve all claims against the company and individuals named in the suit.
Source: Forbes.com
Filed under Class Action, Settlements, Shareholder Lawsuit
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