Overview
Cohen Milstein represents the Employees’ Retirement System of the State of Rhode Island in a shareholder derivative action brought on behalf of UnitedHealth Group against certain current and former officers and directors of the Company.
The action alleges that UnitedHealth’s officers and directors breached their fiduciary duties by failing to adequately oversee and address significant legal, regulatory, compliance, and corporate-governance risks affecting the Company.
Among other things, the complaint concerns the Board’s oversight of issues relating to:
- UnitedHealth’s Medicare Advantage practices, including coding and reimbursement;
- Coverage determinations and utilization-management practices;
- The Company’s acquisition and operation of Change Healthcare, including competition, data-use, privacy, and cybersecurity issues; and
- Insider stock sales and the Company’s share-repurchase program.
The complaint asserts claims including breach of fiduciary duty, insider trading, violations of Sections 10(b) and 14(a) of the Securities Exchange Act of 1934, unjust enrichment, and contribution and indemnification. The action seeks recovery on behalf of UnitedHealth for harm allegedly caused to the Company by these violations of law, as well as appropriate corporate-governance reforms.