Without admitting or denying the allegations, United Health agreed to settle charges that it violated the reporting, books and records, and internal controls provisions of the federal securities laws.
“The settlement, however, takes into account the company’s extraordinary cooperation with the Commission’s staff’s investigation and the meaningful remedial efforts it has undertaken to recoup stock option value improperly given to former corporate executives and to improve its accounting controls and corporate governance policies.” According to the Commission’s complaint, Lubben or others acting at his direction created false or misleading company records indicating that the grants had occurred on dates when the company’s stock price had been at a low.
Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement, said, “United Health engaged in a long-running scheme to hide over a billion dollars in executive compensation.
By materially misstating these expenses for over a decade, United Health breached its duty to shareholders to accurately report its financial results.” According to the Commission’s complaint, certain United Health officers used hindsight to pick advantageous grant dates for the company’s nonqualified stock options that on many occasions coincided with, or were close to, dates of historically low annual and quarterly closing prices for United Health’s common stock.
Let’s look at how backdating affects different aspects of car insurance, health insurance and life insurance.
If you could do this, nobody would ever buy car insurance until after an accident happened.
A couple other important points about backdating and health insurance.