HARTFORD, Conn., May 8, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Minnestota on behalf of all persons who purchased or otherwise acquired the publicly traded securities of UnitedHealth Group, Inc. ("UnitedHealth" or the "Company") (NYSE:UNH) between May 4, 2001 and April 7, 2006, inclusive, (the "Class Period"). Also included are all those who acquired UnitedHealth's securities through its acquisitions of AmeriChoice, Mid Atlantic Medical, Oxford Health Plans and Pacificare Health.
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants misrepresented and omitted material facts concerning UnitedHealth's backdating of stock option grants to defendants William W. McGuire and Stephen J. Hemsley. UnitedHealth represented that the exercise price of all stock options would be no less than the fair market value of UnitedHealth's common stock, measured by the publicly traded closing price for UnitedHealth stock on the day of the grant. However, in reality, those options were backdated so their exercise price correlated to a day on or near the day UnitedHealth stock hit its low price for the year, or directly in advance of sharp increases in the price of UnitedHealth stock. Defendants McGuire and Hemsley have collectively earned over $500 million by exercising these backdated options.
As the truth concerning United Health's practice of backdating option grants became known to the market from a variety of sources, the price of UnitedHealth stock fell $6.76, or 12%, over several trading sessions.
If you are a member of the class, you may, no later than July 7, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.