UnitedHealth sued by investors over its response after CEO's killing [View all]
Source: CBS News
Updated on: May 7, 2025 / 8:36 PM EDT
UnitedHealth Group is being sued by investors who claim the company misled them by allegedly withholding information on how the company was being affected by a backlash prompted by its response to the December killing of top executive Brian Thompson.
In the proposed class action lawsuit filed Wednesday in the Southern District of New York, investor Roberto Faller alleges UnitedHealth "artificially inflated prices" when the company initially forecast earnings per share of $29.50 to $30 in December. UnitedHealth then reaffirmed that outlook in January, despite mounting a backlash following an October Senate report on its high rate of claim denials and, later, the December killing of its CEO.
Faller's complaint comes after UnitedHealth cut its 2025 forecast for adjusted profit per share to a lower range between $26 to $26.50. Attorneys argued that the company's statements on performance expectations last year and earlier this year were "materially false and misleading" because UnitedHealth didn't tell shareholders "it would have to adjust its strategy, which resulted in heightened denials compared to industry competitors."
The complaint described UnitedHealthcare's strategy as "aggressive, anti-consumer tactics." The tactics were becoming "increasingly controversial," the complaint said, especially after the death of former UnitedHealthcare CEO Brian Thompson. Though widely condemned, his killing also triggered an outpouring of public rage over health insurance costs and claims denials.
Read more: https://www.cbsnews.com/news/unitedhealth-investors-lawsuit-brian-thompson-luigi-mangione/
= new reply since forum marked as read