US - CalPERS and an Alaskan industry plumbing pension fund have reached a settlement agreement with UnitedHeath Group over a class action lawsuit launched in 2006.
At the time of the case filing, the California Public Employees' Retirement System (CalPERS), alleged: "UnitedHealth issued materially false and misleading statements regarding the company's business, its stock option plans, compensation practices and its financial results, while employing manipulative acts in connection with UnitedHealth's stock option programs and financial statements."
It also stated: "The lawsuit also alleges that UnitedHealth improperly "spring-loaded" options, a term for granting stock options prior to positive news, thereby helping to lock in a profit for the recipient."
In settling the case UnitedHeath did not admit any wrongdoing but said along with the pay out, it would also supplement changes to corporate governance policies it had already implemented.
Thomas L Strickland, chief legal officer, UnitedHealth Group, commented on the settlement: "This is a significant agreement that resolves a major issue before our company in a way that is in the best interests of our shareholders and other stakeholders."
At the time of the case filing, CalPERS held approximately 6.6 million UnitedHealth shares valued at more than $360m.
Co-lead plaintiff was the Alaska Plumbing and Pipefitting Industry Pension Trust.
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