UnitedHealth gets preliminary OK to pay $895 million to settle stock options suit

Article by: Chen May Yee , Star Tribune
Updated: December 18, 2008 - 3:06 PM

The settlement also has the company’s former chief executive William McGuire paying $30 million and another former executive, general counsel David Lubben, paying $500,000.

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A federal judge gave preliminary approval for UnitedHealth Group Inc. to pay $895 million to settle a class-action lawsuit over backdated stock options.

The settlement also has the company’s former chief executive William McGuire paying $30 million and another former executive, general counsel David Lubben, paying $500,000.

A notice will be mailed to shareholders on Dec. 29 and published the week after. The deadline for objections is February 17 and there is a hearing for final approval March 16.

“This case has been as much work and probably more as I have ever expended on a single matter,” U.S. District Judge James Rosenbaum said, just before he gave his preliminary approval after a two-year-long litigation.

Chen May Yee • 612-673-7434