Judge extends freeze on McGuire's stock options
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A federal judge has extended a freeze on former UnitedHealth CEO Bill McGuire's stock options.
McGuire had initially consented to the asset freeze in the wake of last year's stock options backdating allegations at UnitedHealth.
But last week, the company announced McGuire agreed to give back $400 million in stock options and other pay in order to settle a civil complaint brought by the Securities and Exchange Commission and a lawsuit brought by shareholders on behalf of the company.
McGuire's lawyers say McGuire is now entitled to his remaining $800 million in stock options.
But the California Public Employees' Retirement System (CalPRES) wants the options to stay frozen.
CalPERS is a UnitedHealth stockholder that is leading a securities class-action lawsuit over the backdating scandal. CalPERS' lawyers say McGuire's assets should be held in case McGuire is ordered to pay damages by a jury.
Minneapolis federal Judge James Rosenbaum did not rule on the merits of the case. He extended his previous order freezing the options-- this time indefinitely.
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