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2w ago

UnitedHealth Faces Shareholder Lawsuit Over Concealed Fallout From CEO’s Killing and Policy Shifts

Investors allege the company misled them on profitability impacts tied to public backlash and strategic changes following the December 2024 murder of CEO Brian Thompson.

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 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.