Overview
- A proposed class action lawsuit was filed in Manhattan federal court on May 7, 2025, accusing UnitedHealth of concealing material impacts on its business from shareholders.
- The lawsuit claims UnitedHealth misled investors by failing to disclose how backlash over CEO Brian Thompson's killing and changes to claim-denial policies affected profitability.
- UnitedHealth’s stock dropped 22.4% on April 17, 2025, erasing $119 billion in market value after the company slashed its 2025 profit forecast due to rising Medicare costs.
- CEO Andrew Witty and CFO John Rex are named as defendants in the lawsuit, which seeks damages for shareholders who held stock between December 3, 2024, and April 16, 2025.
- The December 2024 shooting of CEO Brian Thompson, allegedly by Luigi Mangione, intensified public anger over the insurer’s aggressive claim-denial practices, prompting strategic shifts.