Option backdating settlement Chat with oldmen
Former United Health Group CEO and chairman William Mc Guire has agreed to pay million to settle a class-action lawsuit over options-dating issues.
Mc Guire also agreed to cancel options to purchase 3.675 million shares of stock, according to The California Public Employees’ Retirement System (Cal PERS), which led the lawsuit.
He is accused of filing false statements with the SEC, committing wire fraud, and falsely certifying financial reports. Nicholas pleaded not guilty to 25 counts contained in two indictments unsealed June 5.
One of the indictments involves 21 charges alleging improper accounting for stock-option backdating at the microchip maker.
District Court for the District of South Carolina, scheduled a final settlement hearing for June 17 and gave shareholders until June 3 to file objections.
“This is a victory for the 1.5 million members of our system and all United Health shareowners,” said Rob Feckner, president of the Cal PERS board, in a statement.
“We are glad to have this chapter of stock-option backdating abuse behind us and to achieve comprehensive relief for the company’s shareowners.
In other backdating news, a federal judge Monday rejected a deal with prosecutors that would have given Broadcom Corp.
co-founder Henry Samueli probation for lying to the Securities and Exchange Commission about his role in an alleged .2 billion stock-option scam, the Los Angeles Times reported.