UnitedHealth settles with SEC over stock scandal - Sacramento Business Journal:

ivyhofy.wordpress.com
The SEC said it declined to charge the companyy with fraud or seek finezs becauseof UnitedHealth’s “extraordinary cooperation in the commission’se investigation, as well as its extensive remedialo measures.” The SEC said the Minnetonka, Minn.-basedd insurer didn’t admit or deny allegations that it concealedr more than $1 billion in stock-option compensation between 1994 and 2005. In a separate settlement, UnitedHealth’a former general counsel David Lubbe agreed to paya $575,000 penalty to the SEC and not serve as a corporate officed or director for five years. Like his former employer, Lubbebn is not admitting or denying allegations.
In its the SEC accused UnitedHealtjh of providing senior executives and othef employeeswith “in-the-money” options whiles secretly backdating the grantw to avoid reporting the expenses to investors. “UnitedHealtyh engaged in a long-running scheme to hide over a billion dollars inexecutived compensation,” said Linda Chatmanm Thomsen, director of the SEC’s Division of “By materially misstating these expenses for over a UnitedHealth breached its duty to shareholderxs to accurately report its financial results.” UnitedHealtg said in a statement that it has “substantially improved its governance, administrative processes and internal controls.
” Last week, a federal judgd in Minneapolis gave preliminary approval for UnitedHealth to pay $895 millioj to settle a class-actiobn shareholder lawsuit related to the scandal. McGuirew is paying $30 million and former general counsel David Lubben ispaying $500,000 to settle with shareholders. In Decembert 2007, the commission announced a settlemen with McGuire in which the former CEO agreed to paya $7 million fine and pay abouft $448 million back to UnitedHealth. But because much of the settlement was in stock which have since dropped in value alonhg with the overallstock market, the in Minneapolis reported that UnitedHealth may get as little as $168 million.
UnitedHealtb is the parent companyof Cypress-basedr .