Unitedhealth group stock option backdating

United Health said its financial synergies are expected to add up to million in additional operating earnings to combined company results in calendar 2008, with additional gains to follow in subsequent years.

The deal will be financed by United Health with cash on hand, cash flows from operations and normal capital market activities.

NEW YORK (Market Watch) -- United Health Group on Monday said it agreed to acquire Sierra Health Services Inc.

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"It's unclear if the proposed transaction will clear potential antitrust concerns given Sierra's dominant market share." United Health expects the acquisition will immediately add to earnings per share upon closing, adding earnings of about four cents a share in the first 12 months excluding any potential synergies.

United Health will not include these earnings gains in its financial outlook until the transaction has closed.

This instant paper gain was equivalent to extra compensation and was thus a cost to United Health Group.

United Health Group, however, failed to include the costs associated with this extra compensation in its financial results, and thereby overstated its profits. Hemsley and others, the total value of which is approximately $895 million (Black Scholes) or $930 million (intrinsic). In approving the settlement, the Court found:"Plaintiffs' Counsel spent significant time and labor prosecuting this lawsuit.

would not issue an option less than 100 percent of the fair market value on the grant date." The document is a motion by Cal PERS opposing a United Health attempt to dismiss the class-action lawsuit before it goes to trial by granting summary judgment in favor of the company.

United Health claims that its stock was unharmed by the backdating issue and even flourished.The combined business in the Nevada region will continue under the leadership of Anthony Marlon, Sierra's chairman and chief executive, and his management team. Sierra Health Services and United Health were served on this agreement by financial advisors Lehman Brothers and J. It is subject to state and federal regulatory approvals, including in Nevada, California and Texas, approval by Sierra's stockholders, and other customary conditions, United Health said.Sierra provides health benefits and services, and serves about 310,000 employer-sponsored health plan members in Nevada and 320,000 people in senior and government programs throughout the U. The addition of Sierra complements United Health's businesses in the high-growth Southwest region, the company said.United Health Group Incorporated Options Backdating Litigation Gardy & Notis, LLP has been appointed by the Court as lead counsel for shareholders of United Health Group Incorporated (NYSE: UNH) seeking to recoup damages against United Health Group's top executive officers and board of directors for permitting company executives to backdate stock option grant dates to take advantage of lower exercise prices then the price on the actual grant date.

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