Berman Tabacco represents Amalgamated Bank in Central Laborers Pension Fund and Amalgamated Bank v. Burke, C.A. 2019-0299-TMR (Del. Ch.), a derivative action seeking to hold members of UnitedHealth’s Board of Directors and executives implemented incentive programs that rewarded the submission of false claims and ignored and cancelled key internal audits that identified hundreds of millions of dollars of overpayments—in order to increase the company’s revenue. The complaint alleges that UnitedHealth’s Board of Directors’ were involved in a decade-long scheme to defraud the government and taxpayers out of “hundreds of millions—and likely billion—of dollars” in Medicare payments.
This derivative suit followed a successful action to compel the company to produce books and records regarding these practices pursuant to 8 Del. C. § 220, In re Unitedhealth Section 220 Litigation, C.A. No. 0681-TMR (Del. Ch.), which was affirmed by the Delaware Supreme Court on appeal on October 26, 2018.