Bernstein Litowitz Berger & Grossmann LLP Announces Recovery of More Than

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Algemeen advies 07/12/2007 11:00
Bernstein Litowitz Berger & Grossmann LLP Announces Recovery of More Than $920 Million on Behalf of Its Clients and Other Shareholders in the Largest Recovery From Individual Defendants of All Time, the Largest Derivative Suit Recovery, and the Largest Stock Options Backdating Recovery

Former UnitedHealth Group CEO William McGuire to Pay Over $615 Million, Former COO and Current CEO Stephen Hemsley to Pay Approximately $240 Million and Former General Counsel David Lubben to Pay $30 Million in Largest Ever Individual Recoveries

NEW YORK, NY--(Marketwire - December 06, 2007) - Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") announced that it has achieved a historic recovery of more than $920 million on behalf of its clients St. Paul Teachers' Retirement Fund Association, Public Employees' Retirement System of Mississippi, Jacksonville Police & Fire Pension Fund, Louisiana Municipal Police Employees' Retirement System, Louisiana Sheriffs' Pension & Relief Fund, and the Fire & Police Pension Association of Colorado in the shareholder derivative suit concerning options backdating at UnitedHealth Group Inc. ("UnitedHealth") (NYSE: UNH). William McGuire, the former CEO of UnitedHealth, will pay more than $615 million to have the claims against him resolved. Former COO and Current CEO Stephen Hemsley will pay approximately $240 million, and former General Counsel David Lubben will pay $30 million to have the claims against him resolved. In addition, more than $35 million will be recovered from other UnitedHealth officers. To place these numbers in context, McGuire's payment alone is more than forty-six times larger than the total combined amounts recovered from the personal assets of the individual defendants in the Enron case. This recovery far exceeds any amount obtained in any other derivative action and it eclipses by many times the amounts recovered in all other options backdating cases (even if combined with one another).

In addition, an agreement has been reached to submit the claims against Defendant William Spears, the former Chairman of the Compensation Committee who was ousted for his role in the backdating scandal, to binding arbitration before the Honorable Layn Phillips. Phillips, a former federal judge, has already played a key role as the mediator in this lawsuit, facilitating resolution of the claims against defendants. Judge Phillips's decision on Spears's contribution will be final. All of these recoveries remain subject to the approval of Judge James Rosenbaum of the United States District Court, District of Minnesota.

These groundbreaking monetary recoveries are accompanied by promising developments for further corporate governance reform at UnitedHealth. The Lead Plaintiffs, working with world-renowned corporate governance expert Professor Lucian Bebchuk of Harvard Law School, have developed a comprehensive corporate governance reform plan for the company. In its final report, the SLC has singled out Lead Plaintiffs' proposed reforms as worthy of serious consideration by the company. This follows a series of corporate governance reforms already instituted by UnitedHealth in response to this litigation.

Chad Johnson, who represents BLB&G's clients in the UnitedHealth case, said: "This recovery of more than $920 million is an extraordinary result. This historic recovery could not have been achieved without the dedication of the public pension funds which served as the Lead Plaintiffs in this litigation. This result sends a clear message to corporate executives everywhere -- that if you abuse your position for personal gain at the expense of shareholders, you will be held accountable by institutional investors such as those who served as the Lead Plaintiffs here."

BLB&G and co-counsel, on behalf of the Lead Plaintiffs, worked cooperatively with the SLC in assessing and appropriately resolving this matter in the best interests of the company and its shareholders. BLB&G is the leading law firm worldwide advising institutional investors on issues relating to corporate governance, shareholder rights, and securities litigation. Unique among its peers, BLB&G has obtained five of the ten largest securities fraud recoveries in history and over $20 billion on behalf of investors since its founding in 1983.

Contact:
Chad Johnson
(212) 554 -1396
chad@blbglaw.com

Bernstein Litowitz Berger & Grossmann LLP, New York, N.Y.




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