Please listen to the article
This audio is automatically generated. Please let us know if you have any feedback.
Diving briefs:
UnitedHealth is being sued by a group of shareholders who allegedly obfuscated how the killing of Brian Thompson, CEO of Healthcare Juggernaut's insurance division, affected the business by hiding its corporate strategy to deny health care. As a result, shareholders suffered from the outcome, according to a lawsuit filed Wednesday in Manhattan Federal Court, seeking the status of the class action. The lawsuit seeks damages from UnitedHealth shareholders who purchased the shares between December 2024 and April 2025. UnitedHealth said it intends to challenge the lawsuit.
Dive Insights:
Thompson was shot in early December while he was in a Manhattan hotel to participate in United Health's Annual Investor Day. The killing of the CEO of UnitedHealthcare shocked the nation and intensified the wider debate about insurers profiting from delaying or denialing healthcare, given the anger over those practices appears to have driven crime.
As the country's largest private insurance company with over 50 million people, UnitedHealthcare is facing active scrutiny from lawmakers and regulators, some of which have been shown to refuse care at a higher rate than many peers.
The new lawsuit claims that there is zero alleged damage to shareholders from United Health's actions, and that the 2025 United Health financial guidance released before Thompson's death quickly became misleading in light of the confusion, but the company repeated it earlier this year.
“The statement was essentially false and misleading when it was omitted because the company had omitted it was no longer ambitious (as a result of open hostility towards the company from a massive Swass to the company), and could use offensive anti-consumer tactics that use offensive, anti-consumer tactics that require it to achieve $28.15-$28.65 at 28.15-$28.65, the lawsuit says. “So the company was intentionally reckless by doubling the guidance previously issued.”
According to the lawsuit, a clear picture of United Health's true financial health emerged in April, when it announced its results for the first quarter of 2025 in the first quarter of 2025.
UnitedHealth also reduced its profit outlook for the year by 12%, citing unexpectedly high care costs for older people in its Medicare Advantage plan. Comments suggested that the company could pull back usage management processes, such as advance approval, and as a result, it could approve more medical care, some analysts said.
After Thompson's death, UnitedHealth pledged to reduce the process that can limit approved treatments.
Since the release of revenue, UnitedHealth shares have fallen 33%, eliminating market value of over $150 billion. The company's stock is currently at its lowest level since the summer of 2021.
UnitedHealth's value has dropped significantly over the past six months
Prices for $unh will end by December 2024
“The result of the defendant's tort and omissions and the sudden decline in the market value of the company's securities, plaintiffs and other classes of members suffered significant losses and damage,” the lawsuit states.
The plaintiff's lawyers believe there are hundreds, if not thousands, if not thousands of people in the proposed class who are entitled to “substantial damages,” according to the lawsuit.
UnitedHealth “will deny allegations of fraud and vehemently defend the issue,” a spokesperson said in a statement.
Shareholders have previously tried to take the company on missions, and a group of faith-based investors suggest that UnitedHealth generally investigate the effects of refusal of care on business, economy and patients. However, investors retracted the proposal last month after UnitedHealth blocked it.
