Litigation Release No. 16240 / August 3, 1999

SEC v. Michael A. Mooney, (U.S.D.C. D. Minn., Civil Action No. 99-1185, filed August 2, 1999)

The Securities and Exchange Commission ("Commission") announced that on August 2, it filed a Complaint in the United States District Court for the District of Minnesota against Michael A. Mooney ("Mooney"), a vice-president of Underwriting for United Healthcare Corporation ("United"), for insider trading.

The Commission's Complaint alleges that from on or about May 24, 1995 through on or about June 15, 1995, Mooney purchased United options while in possession of material, non-public information regarding United's plan to acquire The MetraHealth Companies, Inc. ("Metra"). The Complaint also alleges that Mooney was a member of United's due diligence team investigating the potential acquisition of Metra. In the two days following the first announcement that United and Metra were involved in possible merger negotiations, United's stock price rose approximately 11%. The Complaint further alleges that, after selling these United options, Mooney's net gain was approximately $274,000. The Complaint further alleges that Mooney violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, the antifraud provision, and seeks a permanent injunction, disgorgement and a civil penalty.