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2d ago

UnitedHealth Faces Investor Lawsuit Over Alleged Concealment of CEO Killing Fallout

Shareholders claim the company misled them about the financial impact of public backlash and strategic shifts following CEO Brian Thompson's December 2024 death.

The corporate logo of the UnitedHealth Group appears on the side of one of their office buildings in Santa Ana, California, U.S., April 13, 2020. REUTERS/Mike Blake///File Photo/File Photo/File Photo
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Overview

  • A class action lawsuit has been filed in the Southern District of New York, alleging UnitedHealth Group misled investors about the effects of CEO Brian Thompson's December 2024 killing on its business and profitability.
  • Shareholders accuse the company of inflating its stock price by reaffirming an optimistic 2025 earnings forecast in January, despite internal and external pressures to revise it.
  • The lawsuit claims UnitedHealth abandoned aggressive claims-denial strategies under regulatory and public scrutiny but failed to disclose the financial consequences to investors.
  • UnitedHealth's April 17 forecast revision, lowering its 2025 earnings estimate, led to a 22.4% stock drop, erasing $119 billion in market value and triggering the lawsuit.
  • The suit names CEO Andrew Witty and CFO John Rex as co-defendants and seeks unspecified damages for investors who purchased shares between December 3, 2024, and April 16, 2025.