MN Healthcare Payer Forecasts Profit Loss for ‘08

Minnesota-based insurer UnitedHealth is lowering its earnings forecast for the year, citing — among other reasons — increased payouts to Medicare Part D beneficiaries, as well as court settlement costs stemming from lawsuits over its stock options practices.

[T]he company also said it agreed to pay $895 million to settle a class action lawsuit with the California Public Employees Retirement System (CalPERS) and Alaska Plumbing and Pipefitting Industry Pension Trust. The 2006 suit filed in the U.S. District Court in Minnesota related to historical stock options practices.

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