A federal judge has approved a settlement that will pay UnitedHealth Group shareholders more than $900 million to resolve a class-action lawsuit over options backdating. The Minnetonka, Minn.-based managed care company will pay $895 million toward the settlement. Former Chairman and CEO William McGuire will pay $30 million and cancel 3.6 million stock options. The insurer’s former general counsel David J. Lubben will contribute $500,000 to the settlement.
The case centers on a scandal over the backdating of stock options that forced McGuire to step down in 2006. U.S. District Court Judge James Rosenbaum gave preliminary approval to the settlement in December. The lead Plaintiff in the case is the California Public Employees Retirement System.
A federal judge has approved a $925.5 million settlement with UnitedHealth Group Inc. and two of its former executives over alleged stock options backdating. Judge James M. Rosenbaum of the U.S. District Court for the District of Minnesota ruled on August 10th that the settlement — which includes an $895 million payment from UnitedHealth – was approved.
Source: Law360 and Associated Press
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