Judge Approves CalPERS Request in UnitedHealth Lawsuit
A federal judge on Thursday approved a request by CalPERS to freeze the severance package of outgoing UnitedHealth Group CEO William McGuire, the Sacramento Business Journal reports. The severance package included a $5.1 million annual pension and a $6 million one-time payout (Wyant, Sacramento Business Journal, 11/30).
The order also bars UnitedHealth and McGuire from continuing negotiations over terms of his departure from the company (McCandless, Financial News, 12/1).
U.S. District Judge James Rosenbaum made the ruling as part of a shareholder lawsuit against McGuire. CalPERS is the lead plaintiff in the case.
McGuire resigned in October after the release of a report that found he likely received backdated stock options (Sacramento Business Journal, 11/30).
The ruling is in effect for 30 days while a special committee reviews the shareholder lawsuits (Financial News, 12/1).