William McGuire Stock Option Scam
A big stock option controversy has sparked a lawsuit against the UnitedHealth Group, INC., Stephen Hemsley, and William McGuire stock option scam. This lawsuit was filed because 11 executives at UnitedHealth exercised old stock options which made them in excess of $500 million. The lawsuit is a Class Action lawsuit filed by Finkelstein, Thompson, & Loughran.
After the William McGuire stock option scam become public information the prices of stock for UnitedHealth fell over 17% and continues to go down. The stock is expected to continue to fall as the investigation continues.
Stock options are a common perk for companies to use for executives as a bonus or payment for newer companies. They allow someone to buy the stocks of a company for a set price. This means that if stock prices go above this price the executives can still buy the stock for a cheaper price and either keep the stocks or sell them for profit.
There is usually an expiration date on these stock options to keep them from being used whenever you want.
The current problem is that a lot of people are backdating them. This means that people are waiting for the stock to reach a high and then selling the options, sometimes even after the expiration date.
This is legal if the company allows it but because so many companies have been having this happen it is suspected that there is something going on under the table.
This type of William McGuire stock option scam affects everyone and not just company executives. By doing this scam heads of companies are depriving the hard working people and investors in the company of their fair share of their money.
What this means is that the crooked get rich while the honest people lose their investments because of the greed of others.
Sadly this scam is not too uncommon. There have been over 100 reported companies also having trouble with backdated stock options.
These include UnitedHealth, Power Integrations Inc, Comverse Technology Inc. and Vitesse. They are all currently falling under investigation for scams resulting from the buying and selling of stock options such as William McGuire stock option scam.
However, a lot of lawsuits and investigations are starting to show up against these companies.
The average person is getting tired of getting scammed out of their money just because some executive wants to get a bigger yacht. With a lot of these people remembering the recent Enron scandal and other scandals where people were cheated out of their hard earned money they are being a lot more careful with their investments.
The average person is also being a lot more careful about where they invest their money and what company they buy stocks in.
The problem isn't in the stock options themselves but the abuse of the power they give. Hopefully as stock option holders become more aware of the lawsuits being filed and the fact that they can't get away with everything they will think twice about trying to scam the public out of its hard earned money.
Until then we can only watch and wait to see what happens in the lawsuits.
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