UnitedHealth Unit Prevails in Indemnification Dispute Over Deal

A Delaware vice chancellor awarded a UnitedHealth Group Inc. subsidiary more than $38 million in an indemnification fight over its $750 million acquisition of USHEALTH Group Inc., finding the seller’s representative liable for breaches of the merger agreement.

Vice Chancellor Paul A. Fioravanti said in an opinion Thursday that Golden Rule Financial Corp. proved USHEALTH incorrectly applied ASC 606, an accounting standard governing revenue recognition for certain non-insurance contracts, while repeatedly representing during closing the standard had been adopted as of Jan. 1, 2019, and had only an immaterial impact. Fioravanti found USHEALTH breached sections of the merger agreement and ...