Former Managed Care Chair To Settle Suit

UnitedHealth, another defendant in the suit, already has agreed to pay $895 million to the plaintiffs.

"I am pleased to be able to help bring the stock option dating issues closer to complete resolution," McGuire says in a statement about the latest agreement. "As CEO, I consistently took responsibility to help address important issues facing UnitedHealth Group, and I have continued to do my part to resolve stock option dating issues since leaving the company. I remain extremely proud of the outstanding group of men and women at UnitedHealth who helped improve the health and well-being of people while building a highly innovative and successful company."

In December 2007, McGuire agreed to settlements with the U.S. Securities and Exchange Commission and the UnitedHealth Group Special Litigation Committee. Those settlements still must be approved by the court.

CalPERS is welcoming the announcement of the McGuire settlement agreement.

Peter Mixon, CalPERS General Counsel. "This precedent-setting recovery demonstrates that the company's true owners – shareowners – will hold CEOs accountable for disregarding principled corporate governance," CalPERS General Counsel Peter Mixon says in a statement.