CalPERS To Share in $925M Settlement From UnitedHealth Lawsuit
This week, a federal judge approved a $925 million settlement that UnitedHealth Group and its former CEO will pay to CalPERS and other plaintiffs, the Sacramento Bee reports.
CalPERS was the lead plaintiff in a lawsuit alleging that UnitedHealth had illegally overstated its profit by backdating stock options to an earlier date when the share price was lower.
CalPERS claims that it lost $22 million by investing in UnitedHealth stock during 2005 and 2006.
For the settlement, UnitedHealth will pay $895 million and former CEO William McGuire will pay $30 million. Officials have yet to announce CalPERS' share of the funds, a spokesperson said (Kasler, Sacramento Bee, 8/14).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.