Las Vegas, NV: (Jun-11-07) A shareholder lawsuit that sought class action status was filed against Sierra Health Services Inc., relating to its proposed acquisition by UnitedHealth Group Inc. The suit alleged that the Las Vegas based health insurer and its directors breached fiduciary duties of loyalty, due care, independence, good faith, and fair dealing in connection with the planned $2.6 billion acquisition by Minnetonk, MN based UnitedHealth. The lawsuit was filed March 19, 2007 in the Eighth Judicial District Court for the State of Nevada in Clark County.
In a settlement reached, though Sierra denied any wrongdoing, it agreed to resolve all the claims, including those relating to the proposed transaction, fiduciary obligations in connection with the acquisition, and negotiations and disclosures made in connection with the acquisition. The settlement will be subject to certain conditions, including court approval following notice to members of the proposed settlement class and consummation of the transaction. Sierra will also pay plaintiffs' counsel attorneys' fees and expenses of $485,000. [BUSINESS INSURANCE: SHAREHOLDER SETTLEMENT]