Minnetonka, Minn.-based UnitedHealth has agreed to pay $895 million to settle the class-action case. Former UnitedHealth Chairman and Chief Executive William McGuire also agreed to pay $30 million toward the settlement and to return stock options representing more than 3 million shares.

The settlement also calls for a $500,000 payment from retired UnitedHealth general counsel David J. Lubben, who also was named a defendant in the case.