March 2006: The first of several shareholder derivative actions are filed against certain current and former officers and directors of UnitedHealth in the U.S. District Court for the District of Minnesota. That action has since been consolidated with six other actions, and the amended complaint alleges that defendants breached their fiduciary duties to the company, were unjustly enriched and violated the securities laws in connection with the company's historic stock option practices. April 2006: The company announces an informal inquiry by the SEC relating to the company's stock option practices. May 2006: UnitedHealth receives a subpoena from the U.S. Attorney for the Southern District of New York requesting documents from 1999 onward relating to the granting of stock options, as well as a request from the Internal Revenue Service for documents from 2003 onward relating to stock options and other compensation for certain executive officers in the company's annual proxy statements. June 2006: The company receives a civil investigative demand from Minnesota's attorney general requesting documents from January 1997 onward concerning executive compensation and stock option practices. UnitedHealth files a motion for a protective order, which is denied by the trial court. October 2006: The company releases an independent report examining historical stock options practices, and makes a series of management changes, among them Dr. William W. McGuire steps down as president and chief executive officer, to be succeeded by Stephen J. Hemsley. December 2006: UnitedHealth receives a formal order of investigation from the Securities and Exchange Commission.
n March 2007: The company completes the financial restatement process and reports 2006 earnings.
Source: Company reports