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 with operations in Hartford 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. (AP)
Edac’s Patient Reward
Good things come to those who wait, the adage goes.
In the case of Edac Technologies in Farmington, waiting paid off handsomely last week with the acquisition of the year for CEO Dominick Pagano.
The producer of aerospace components and tooling announced it bought most of the assets of Service Network Inc., a Worcester, Mass., maker of precision grinders found on the shop floors of some of the world’s biggest automakers and parts suppliers — names like GM, Ford and BorgWarner.
Service Network, a small, family-owned outfit, had fallen on hard times, forcing it to file for bankruptcy reorganization.
A few years ago, Pagano said he had approached the closely-held company with a generous buyout offer. Each company knew the other, because SNI equipment used spindles that Edac makes.
Pagano declined to detail his original offer and what he paid in bankruptcy court for SNI’s assets.
However, he says helping Edac do these deals is the fact that its own coffers are flush from its expanding business, along with having “a banker who loves us,’’ Pagano said. (Gregory Seay)
