UnitedHealth sued by shareholders over its reaction to backlash from executive's killing

Jonathan Stempel

Wed, May 7, 2025, 12:38 PM 2 min read

By Jonathan Stempel

NEW YORK (Reuters) -UnitedHealth Group was sued connected Wednesday for allegedly concealing however backlash from the sidesplitting of a apical enforcement was damaging its business, causing its banal to nosedive aft the insurer lowered its 2025 outlook.

In a projected people enactment filed successful Manhattan national court, shareholders said the insurer defrauded them aft the December 4 shooting of UnitedHealthcare Chief Executive Brian Thompson by shifting distant from strategies that led to higher-than-average claims denials, without revealing the interaction connected profitability.

UnitedHealth shares fell 22.4% connected April 17, wiping retired astir $119 cardinal of marketplace value, aft the insurer chopped its 2025 forecast for adjusted nett per stock to betwixt $26 and $26.50 from betwixt $29.50 and $30.

The insurer cited higher costs successful its Medicare business. It had issued the aged forecast 1 time earlier Thompson's death.

Shareholders said UnitedHealth had antecedently inflated its banal terms by recklessly sticking with its aged forecast, adjacent arsenic mounting nationalist choler and an October 17 U.S. Senate study connected claims denials caused it to go much patient-friendly.

UnitedHealth had nary contiguous comment. The insurer has offices successful Eden Prairie, Minnesota and Washington, D.C.

Wednesday's suit seeks unspecified damages for UnitedHealth shareholders from betwixt December 3, 2024 and April 16, 2025. Chief Executive Andrew Witty and Chief Financial Officer John Rex are besides defendants.

Luigi Mangione has pleaded not blameworthy to murdering Thompson successful midtown Manhattan, and could look the decease penalty.

Mangione has go a leader to immoderate Americans who are unhappy with for-profit wellness insurers that contradict sum for treatments.

The lawsuit is Faller v UnitedHealth Group Inc et al, U.S. District Court, Southern District of New York, No. 25-03799.

(Reporting by Jonathan Stempel successful New York; Editing by Chizu Nomiyama)