Spring 2006: The Wall Street Journal writes about a number of companies, including UnitedHealth Group Inc., that may have improperly backdated stock options.
October 2006: William McGuire steps down as chief executive after an independent investigation finds stock options at the company were likely backdated, ending a 20-year career at UnitedHealth. Chief Operating Officer Stephen Hemsley takes the helm.
December 2006: The California Public Employees' Retirement System (CalPERS) files a lawsuit against UnitedHealth and former and current executives alleging securities fraud. The U.S. Securities and Exchange Commission (SEC) makes formal its probe into UnitedHealth's stock-options program.
January 2007: Former and current UnitedHealth officials agree to reprice their stock options.
March 2007: UnitedHealth restates earnings downward by $1.53 billion over the past 12 years to account for backdated options.
December 2007: McGuire and other UnitedHealth officials agree to give up a total of $900 million in stock options value -- including those previously repriced -- and other benefits to the company. McGuire also agrees to pay a record $7 million fine to the SEC. Later, a federal judge asks the Minnesota Supreme Court to what extent he can review the blockbuster deal, throwing the settlement into question.
March 2008: A federal judge grants class action status to the CalPERS lawsuit.
July 2, 2008: UnitedHealth agrees to pay $895 million to settle the CalPERS-led lawsuit. The company also agrees to pay $17 million to settle a separate class case involving the Employee Retirement Income Security Act.
