Judge approves settlement in UnitedHealth Group case
A federal judge in Minneapolis has approved a settlement relating to a stock options backdating scandal at UnitedHealth Group.
The case stems from an internal report at UnitedHealth in 2006 that showed certain executives, including former chief executive William McGuire, likely backdated stock options. Shareholders brought a lawsuit against the company.
To settle the lawsuit, McGuire agreed to give up stock options and other pay, valued at the time at more than $400 million.
In his ruling, Federal Judge James Rosenbaum said one or more of the defendants, who include other former executives ousted by the scandal, "could possibly pay more." But Rosenbaum concluded that doesn't mean the settlement is inadequate. A state court approved the deal last month.
A UnitedHealth spokesman said this is "an historic recovery for the company," and they're pleased to have the matter behind them.
In a statement, McGuire said: "I look forward to closing this challenging chapter of my life so that I can devote my full attention both to my philanthropic interests, as well as my business efforts to improve the quality and accessibility of health care for all Americans."
McGuire agreed to other payouts in a class-action lawsuit settlement. A related settlement cost Minnetonka-based UnitedHealth about $900 million; Rosenbaum has yet to approve that deal.
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