Summary
UnitedHealth Group Inc. (UNH) filed an 8-K on November 24, 2008, to report the filing of a stipulation of settlement for a federal securities class action lawsuit. This litigation stemmed from historical stock option practices. The company and certain current and former officers and directors reached an agreement in principle with the lead plaintiff, CalPERS, and the plaintiff class representative, Alaska Plumbing and Pipefitting Industry Pension Trust. As part of the proposed settlement, UnitedHealth Group has paid $895 million into a settlement fund for the benefit of class members. The settlement aims to fully resolve all claims against the company and the named current and former officers and directors, with no admission of wrongdoing from any party. The company is also enhancing its corporate governance policies. The settlement is subject to preliminary and final court approval.
Key Highlights
- 1UnitedHealth Group has formally filed a stipulation of settlement for a class action lawsuit related to historical stock option practices.
- 2The proposed settlement resolves claims against the company and its current and former officers and directors.
- 3The company has paid $895 million into a settlement fund for class members.
- 4No party admits wrongdoing as part of the proposed settlement.
- 5UnitedHealth Group will implement additional enhancements to its corporate governance policies.
- 6The settlement is subject to preliminary and final court approval.
- 7The company retains the right to terminate the settlement under certain conditions related to class member opt-outs.