Friday, December 28, 2007
Earlier this month, the parties announced a $420 million settlement between UnitedHealth Group and its ousted CEO William McGuire. The agreement requires McGuire to forfeit stock options and retirement pay to settle civil and federal charges of stock option backdating. However, the federal district court judge reviewing the proposed settlement has asked the Minnesota Supreme Court the extent to which, under Minnesota law, he can review the reasonableness of the settlement. The judge noted that the lack of findings by the Special Litigation Committee made it difficult for him to determine that its exercise of business judgment was reasonable. WSJ, UnitedHealth Ex-CEO's Pact Is Uncertain.