Ohio pension funds are taking UnitedHealth Group Inc. to court over allegations of problems with executive compensation arrangements.
The Public Employees Retirement System of Ohio and the Teachers’ Retirement System of Ohio have filed a suit against UnitedHealth in the U.S. District Court in Minneapolis.
In the suit, which was brought as a derivative action and as a class action, the retirement plans allege that UnitedHealth began engaging in improper use of stock options in 1996 or earlier, by letting Dr. William McGuire, the company’s chairman, retroactively select the date on which options were granted.
The plans hold about 5 million shares of UnitedHealth stock.
Lawyers at Grant & Eisenhofer P.A., Wilmington, Del., are representing the retirement plans.
In addition to UnitedHealth, the defendants in the suit include McGuire and other current and former UnitedHealth board members, according to the retirement plans’ law