In a Securities and Exchange Commission filing, UnitedHealth Group revealed some details of a previously announced class-action settlement with shareholders over the health insurers stock backdating scandal.
Under the terms of the settlement with the plaintiffs, lead by the California Public Employees Retirement System, UnitedHealth will supplement changes it has already made in its corporate governance policies. The nature of those changes was not disclosed in the SEC filing.
The Minnetonka, Minn-based health insurer has already paid $895 million into a fund to CalPERS and other plaintiffs to settle the complaint, according to the SEC filing. The company admitted to no wrongdoing as part of the settlement agreement.
The settlement, which remains subject to approval by a U.S. District Court in Minnesota, stems from a stock backdating scandal that erupted in 2006. The companys chief executive officer, William McGuire, stepped down as a result of the scandal and has been the subject of numerous lawsuits. -- by Rebecca Vesely