CalPERS Suit Against UnitedHealth Group Wins Class-Action Status
On Tuesday, Judge James Rosenbaum certified CalPERS' lawsuit against UnitedHealth Group over improper backdating of stock options as a class action, Dow Jones reports (Dow Jones, 3/18).
In July 2006, CalPERS filed a lawsuit against UnitedHealth, the nation's second-largest managed care company, alleging that CalPERS lost money because of the stock options to UnitedHealth executives being backdated (California Healthline, 9/15/06).
CalPERS estimates its losses at about $22 million, and CalPERS attorney Ramzi Abadou estimated that total losses for all shareholders in the case amounted to billions of dollars (AP/Sacramento Bee, 3/19).
The case is being heard in federal court in Minneapolis (Dow Jones, 3/18). Attorneys have been instructed to be prepared for trial by July 1 (AP/Sacramento Bee, 3/19).