Federal judge OKs $925M UnitedHealth settlement - KXLT - Fox 47 Rochester MN News, Weather, Sports #rochmn

Federal judge OKs $925M UnitedHealth settlement

MINNETONKA, Minn. (AP) -- A federal judge has approved a settlement that pays UnitedHealth Group shareholders more than $900 million to resolve a class-action lawsuit over options backdating.

The Minnetonka, Minn.-based managed care company pays $895 million toward the settlement. Former Chairman and CEO William McGuire pays $30 million and cancels 3.6 million stock options.

The insurer's former general counsel David J. Lubben contributes $500,000.

The case centers on a scandal over the backdating of stock options that forced McGuire to step down in 2006.

U.S. District Court Judge James Rosenbaum gave preliminary approval to the settlement in December.

The lead plaintiff in the case is the California Public Employees Retirement System.

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