A Judge Extended The Freeze On Former United Health CEO William McGuire’s Stock Assets.

On Monday a federal judge extended his order barring a former CEO of UnitedHealth Group Inc. from cashing in unexercised stock options while shareholders pursue lawsuits over the company’s options award practices.

The court order had been set to expire on Monday, but U.S. District Judge James Rosenbaum in Minneapolis extended it to Oct. 15 while a special litigation committee created by the UnitedHealth board finishes its review of options-related lawsuits filed against the company.

The order applies to William McGuire, who stepped down as UnitedHealth chairman and chief executive last year following an internal report by the insurer that concluded many of his option awards were likely backdated.

McGuire, one of the highest-profile executives caught up in the U.S. scandal over options award practices, had accumulated more than $1.6 billion in stock options by the end of 2005.

Following the internal report, he agreed to reprice some of those options, reducing their value.

Judge Rosenbaum’s order also temporarily froze McGuire’s retirement pay, reportedly $5.1 million a year.

The judge, however, said in his new order on Monday that the company could pay McGuire up to $3 million out of the ex-CEO’s executive savings plan while the freeze remains in effect.