Navigation Links
Record-Breaking Financial Recovery Made in UnitedHealth Backdating Case
Date:12/7/2007

Over $887 Million To Be Recovered On Backdating Claims; Connecticut

Retirement Plans And Trust Funds Serves As Lead Plaintiffs

HARTFORD, Conn., Dec. 7 /PRNewswire/ -- Treasurer Denise L. Nappier and Attorney General Richard Blumenthal today announced agreements that will return over $887 million to UnitedHealth Group, Inc. (NYSE: UNH) in connection with an investigation into widespread backdating of stock options at the company.

The agreements -- by far, the largest recovery in any backdating case to date -- were negotiated as a partial response to a lawsuit pending in Minnesota brought on behalf of UnitedHealth by its shareholders. The Connecticut Retirement Plans and Trust Funds are a lead plaintiff in the case.

A Special Litigation Committee (SLC) that has been investigating claims relating to the widespread backdating of stock options at UnitedHealth has entered into today's agreements.

Under today's agreements, Dr. William McGuire - UnitedHealth's former Chairman and CEO -- will return approximately $420 million to the company; David Lubben, the company's former Secretary and General Counsel, agreed to repay over $25 million; and former director William Spears (who chaired the company's Compensation Committee) agreed to submit to binding arbitration, which may provide an additional award to the company. The company's current CEO, James Hemsley, also agreed to return an additional $50 million to the company. With previously announced option repricings from various employees and officers (including Messrs. McGuire, Lubben and Hemsley), which totaled over $388 million, these agreements will return more than $887.9 million in value to UnitedHealth.

"The financial recovery here is truly groundbreaking," commented Denise L. Nappier, the Treasurer of the State of Connecticut, who noted that the recovery translates to approximately 70% of the damages suffered by the Company through the issuance of backdated options. "No doubt the company is to be commended for owning up big time and negotiating a milestone outcome that is in the best interest of the company and its shareholders. We remain cautiously optimistic while this settlement is not an end to itself, it is a forerunner for final resolution of all issues with UnitedHealth."

Blumenthal said, "Corporate executives must realize that public corporations are not their private piggy banks. This landmark agreement is a powerful step toward enforcing real accountability. Executives work for their companies and shareholders, not solely for their personal enrichment."

In addition to derivative claims, the Connecticut Retirement Plans and Trust Funds also have asserted class action claims in the litigation. While an extraordinary development, the agreements with the former officers and directors do not end all shareholder action against UnitedHealth.

"Significant corporate governance reforms are still needed to ensure that the kinds of abuses that gave rise to this backdating scandal in the first place do not occur again," explained Nappier. She continued, "Although the Company already has adopted reforms since we commenced this litigation, we remain steadfast in our resolve to achieve the highest standards of ethical conduct, transparency and accountability for the benefit of all stakeholders."

Executive compensation is a priority corporate governance issue for Treasurer Nappier. The Treasurer's concerns stem from her belief that executive compensation is a "window" into board accountability.

In its report announcing the financial terms of the agreements, the Special Litigation Committee specifically credited numerous corporate governance reforms proposed by the derivative plaintiffs and "commends them to the Company for careful consideration by its management and the Board of Directors."

Contact:

Office of the Attorney General

Tara Stapleton

860-808-5324

Office of the Treasurer

Christine Palm

860-702-3000


'/>"/>
SOURCE Connecticut State Attorney General's Office
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. UCI Medical Affiliates, Inc. Sponsors Doctors Care Record-breaking Drive Against Prostate Cancer
2. WorldHeart Appoints David Pellone Chief Financial Officer
3. Align Technology Executive to Present at Upcoming Financial Conferences
4. Somanetics Corporation to Release Third Quarter 2007 Financial Results and Host Conference Call September 19
5. Martek Announces Third Quarter 2007 Financial Results
6. Retired NYPD Lieutenants William E. Keegan, Jr., Owen McCaffery and John Moran and Tom Thees, a former COO in the financial industry, announce today the formation of H.E.A.R.T (Healing Emergency Aid Response Team) 911.
7. Presidential Candidates Address Health, Financial Security at AARPs Life@50+
8. VNUS Medical Technologies Announces Resignation of Chief Financial Officer and VP, Finance & Administration
9. NMHC Reports Fourth Quarter and Fiscal Year 2007 Financial Results
10. Transition Therapeutics Announces Fiscal 2007 Year End Financial Results
11. Peoples United Financial CEO Has Surgery
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/10/2016)... ... February 10, 2016 , ... 10 Best Water ... three leading bottled water brand owners that topped the list as a result of ... optimize conversion. The premier brand was Tibet 5100, a top notch water company that ...
(Date:2/10/2016)... ... ... Ongoing news of the ravages of traumatic brain injury (TBI) among former ... takes a closer look at cases of TBI being managed by their members. The ... the aging population, and identifies the challenges associated with their care. , During the ...
(Date:2/10/2016)... ... 10, 2016 , ... Gout is like no other joint pain. It strikes ... with intense swelling and redness. It is triggered by the crystallization of uric acid ... the most susceptible, according to the February 2016 issue of Harvard Men's Health Watch. ...
(Date:2/10/2016)... (PRWEB) , ... February 10, 2016 , ... ... four time Emmy award winner and inspirational speaker Jan Fox will serve as ... by Speaking Boldly will provide participants with tools to more effectively communicate with ...
(Date:2/10/2016)... ... February 10, 2016 , ... A national ergonomics pioneer ... Expo event March 9-11, 2016. Hosted by Ohio's Bureau of Worker's Compensation, the ... the longest running and largest worker's compensation event in Ohio, organizers of the ...
Breaking Medicine News(10 mins):
(Date:2/10/2016)... Calif. , Feb. 10, 2016 /PRNewswire/ ... a synergistic confluence of various technologies that ... propositions, previously unavailable. These opportunities create a ... convergence, in turn, drives the development of ... scenario is characterized by technology convergences, which ...
(Date:2/10/2016)... PRINCETON, New Jersey and OR AKIVA, ... Regentis Biomaterials Ltd., a leader ... of its Series D investment round on February 5, ... Haisco Pharmaceutical Group ("Haisco"), a leading Chinese pharmaceutical ... Medica Partners, SCP Vitalife Partners, Generali Financial Holdings and ...
(Date:2/10/2016)... DIEGO , Feb. 10, 2016 ALSP, Inc. ... , MD as Consultant for Medical Affairs in preparation for ... Michael Pierschbacher , PhD, CEO, stated, "We are pleased ... We look forward to working with an individual of such ... We look forward to drawing deeply on his broad experience ...
Breaking Medicine Technology: