Shareholders of UnitedHealth Group, Inc. (NYSE:UNH) filed a class-action lawsuit on Wednesday accusing the company of misleading investors by concealing the negative business impacts that followed the December 2024 killing of UnitedHealthcare CEO Brian Thompson.
The Details: The lawsuit alleges UnitedHealth withheld critical information regarding the backlash and regulatory scrutiny that arose after the CEO's death, particularly concerning the company's aggressive claims denial practices.
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According to the plaintiffs, the public outcry and scrutiny forced strategic, more "patient-friendly" changes that would reduce the company's profitability.
UnitedHealth had initially forecasted adjusted earnings per share between $29.50 and $30 for 2025 and reaffirmed this outlook in January 2025, despite mounting public and regulatory pressures.
However, on April 17, 2025, the company revised its 2025 profit forecast downward to a range of $26 to $26.50. UnitedHealth stock plunged 22.4%, wiping out approximately $119 billion in market value in one day.
The shareholders contend UnitedHealth's failure to disclose the shift away from its previously aggressive claim denial strategies and the resulting impact on profitability constituted materially false and misleading statements.
The lawsuit was filed in federal court in Manhattan and named UnitedHealth executives, including CEO Andrew Witty and CFO John Rex, as defendants. It covers the period from Dec. 3, 2024, to April 16, 2025, and seeks damages for shareholders who purchased UnitedHealth shares during that time.
“The company denies any allegations of wrongdoing and intends to defend the matter vigorously,” a UnitedHealthcare spokesperson said in a statement to NBC News.
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