Judge considers UnitedHealth settlement

UnitedHealth Group CEO Bill McGuire
Bill McGuire, former Chairman and CEO of UnitedHealth Group, talked with a policy-holder after a speech in May, 2006. The scandal broke in late that year and led to his ouster from the company.
MPR Photo/Jeff Horwich

A federal judge in Minneapolis on Friday will consider a settlement relating to a stock options backdating scandal at UnitedHealth Group in Minnetonka.

Last year, former UnitedHealth chief executive William McGuire agreed to give up at least $400 million in stock options and other pay to settle a shareholder lawsuit over his stock options.

The scandal broke in late 2006 and led to his ouster from the company.

McGuire agreed to more payouts to settle a class action lawsuit. A related settlement put Minnetonka-based UnitedHealth on the hook for about $900 million.

Karl Cambronne represented shareholders in one of the earlier suits. He said federal judge James Rosenbaum could lift a court ordered freeze on McGuire's remaining stock options.

"All the assets necessary to fund the settlements have been preserved. And so I think the court will just be asked to lift that injunction," Cambronne said.

Rosenbaum has questioned whether the first settlement is big enough. He could push the settlement to finalization or reject it.

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