Calpers vs. UnitedHealth.Calpers vs. UnitedHealth: The California Public Employees' Retirement System asked a U.S. District Court judge in Minneapolis to freeze outgoing UnitedHealth Group UnitedHealth Group Incorporated NYSE: UNH is a managed health care company. It is the parent of United Healthcare, one of the largest health insurers in the U.S. It was created in 1977, as UnitedHealthCare Corporation (it renamed itself in 1998), but traces its origin to a Chief Executive William McGuire's $1.1 billion retirement package, pending a lawsuit involving the legality le·gal·i·ty n. pl. le·gal·i·ties 1. The state or quality of being legal; lawfulness. 2. Adherence to or observance of the law. 3. A requirement enjoined by law. Often used in the plural. of his stock options. Calpers is the lead plaintiff named in a shareholder lawsuit against UnitedHealth over its stock-option practices. It is asking for a preliminary injunction A temporary order made by a court at the request of one party that prevents the other party from pursuing a particular course of conduct until the conclusion of a trial on the merits. A preliminary injunction is regarded as extraordinary relief. that would prevent McGuire from receiving benefits called into question by outside counsel that found evidence of options backdating Options backdating is the practice of granting an employee stock option that is dated prior to the date that the company actually granted the option. This practice raises a number of legal and accounting issues. . Calpers has also asked that McGuire be prevented from exercising his remaining UnitedHealth stock options and freeze the proceeds he reaped from a Feb. 23 sale of 2.3 million shares of common stock that brought him $136 million. McGuire's attorney, David Brodsky, did not respond to questions. McGuire has been at the center of the unfolding options-backdating debate. UnitedHealth bought PacifiCare Health Systems PacifiCare Health Systems (former NYSE: PHS) was a Fortune 500 healthcare company based in Cypress, California. It was acquired by UnitedHealth Group (NYSE: UNH) in late 2005, which continues to market health plans under the PacifiCare name. Inc. of Cypress late last year. |
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