McGuire appeals freeze on stock options
by Annie Baxter, Minnesota Public RadioLawyers for UnitedHealth Group's former CEO Bill McGuire are appealing a court ruling that keeps McGuire's stock options frozen.
St. Paul, Minn. — McGuire's lawyers had expected a federal district judge in Minneapolis to release the stock options after a shareholder lawsuit was settled UnitedHealth.
The suit stemmed from a stock options backdating scandal, in which McGuire played a central role. Last month, Minnetonka-based UnitedHealth announced a settlement calling for McGuire to give back $400 million in stock options and other pay.
But Judge James Rosenbaum has asked the Minnesota Supreme Court to clarify his authority to examine and possibly reject the settlement. And he also continued the freeze of McGuire's remaining stock options, valued at nearly $900 million.
Rosenbaum said McGuire could be personally on the hook for possible damages in a separate class action lawsuit, and so the funds should be protected. McGuire's attorneys have said he should have access to the money.
Annie Baxter
• ReporterAnnie Baxter started her radio trajectory answering the phones at a pledge drive at KQED, San Francisco's NPR member station, and managed to wriggle her way into an internship soon thereafter.
