UnitedHealth settles backdating suit for $900M

A federal judge in Indianapolis has approved a settlement once valued at about $900 million for a lawsuit pitting UnitedHealth Group shareholders against company executives over a stock options scandal.

Shareholders of the Minnetonka, Minn.-based insurer, which has operations in Hartford, sued former Chief Executive William McGuire and several other executives in 2006 to recover mostly options and cash for the company. They accused the executives of failing to fulfill their fiduciary duties by allowing the backdating of stock options.

Problems with backdating forced McGuire to step down in 2006. The practice involves manipulating the timing of options grants so they look as though they were made on days when the stock's value was lower. (AP)