In 2006, the Securities and Exchange Commission (SEC) began investigating the conduct of United Health Group's management and directors, for backdating of stock options.
Investigations were also begun by the Internal Revenue Service and prosecutors in the U. attorney's office for the Southern District of New York, who subpoenaed documents from the company.
On January 13, 2009, Ingenix announced an agreement with the New York State attorney settling the probe into the independence of the health pricing database.
In 1974, Richard Tyagi Burke founded Charter Med Incorporated, a Minnetonka, Minnesota-based privately held company.
In 1977, United Health Care Corporation was created to reorganize the company and become the parent company of Charter Med.
United Health Group offers products and services through two operating businesses, United Healthcare and Optum, both subsidiaries of United Health Group.
Optum is a new business brand of United Health Group and operating business through Business Process Outsourcing (BPO) services.
The investigations came to light after a series of probing stories in the Wall Street Journal in May 2006, discussing apparent backdating of hundreds of millions of dollars' worth of stock options by UHC management.
The backdating apparently occurred with the knowledge and approval of the directors, according to the Journal.
Legal actions filed by the SEC against United Health Group itself are still pending.
In June 2006, the American Chiropractic Association filed a national class action lawsuit against the American Chiropractic Network (ACN), which is owned by United Health Group and administers chiropractic benefits, and against United Health Group itself, for alleged practices in violation of the federal Racketeer Influenced and Corrupt Organizations Act (RICO).
United Health Group serves approximately 70 million individuals throughout the United States.
In 2015, the company reported an operating income of billion.
In February 2008, New York State Attorney General Andrew M.