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Diving brief:
- Unitedhealth is continued by a group of shareholders for having allegedly hidden a business strategy to refuse medical care and obscure the way in which the murder of Brian Thompson, CEO of the health care insurance division of health care, had an impact on the company.
- The shareholders suffered accordingly, according to the trial, which was filed Wednesday before the Federal Court of Manhattan and requests the status of collective appeal.
- The trial requests damages for UNITEDHEALTH shareholders who bought shares between December 2024 and April 2025. Unitedhealth said she intended to challenge the trial.
Diving insight:
Thompson was shot in early December While entering a hotel in Manhattan to participate in the Annual Investors’ Day in United. The murder of the CEO of Unitedhealthcare shocked the nation and intensified a broader debate on insurers benefiting To delay or deny medical care, since the anger of these practices seems to have resulted in crime.
As the largest private insurer in the country covering more than 50 million people, Unitedhealthcare has been aggressive Legislator examination and regulators in the middle of the data showing them denies care at higher rates than many of its peers.
The new zero trial in damages presumed to the shareholders of the behavior of United, arguing that the financial guidelines of Unitedhealth for 2025 published before the death of Thompson quickly became deceptive in the light of the turmoil – however, the company has always reiterated it earlier this year.
“The declaration was materially false and misleading when it was made because it had omitted that the company was no longer arranged (due to a more in-depth examination compared to the company, as well as the open hostility against the company of large public bands) to use the aggressive and anti-consuming tactics which would need to reach $ 28.15. Share, ”says the trial. “As such, the company was deliberately reckless to double its advice previously issued.”
A clearer image of the true financial health of Unitedhealth appeared in April, when Unitedhealth published results for the first quarter of 2025 This has considerably underperformed the expectations of analysts, according to the pursuit.
United also reduced its profit prospects for the year by 12%, partially citing unexpected care costs for the elderly in its Advantage Medicare plans. The comments suggest that the company could use the use management processes such as previous authorizations and the approval of more medical care accordingly, certain analysts said.
After the death of Thompson, United Health has undertaken to reduce the processes This may restrict the approved treatment.
Since the statement of profits, the shares of United Health has dropped by 33%, erasing more than $ 150 billion in market value. The company’s actions have currently been at its lowest level since the summer of 2021.
The value of Unitedhealth has dropped considerably in the last six months
$ A fence price, December 2024 to date
“Due to the unjustified acts and omissions of the defendants, as well as the precipitous decrease in the market value of the company’s securities, the applicant and other class members have undergone significant loss and damages,” said the trial.
The lawyers of the complainants believe that there are hundreds, even thousands, of members of the proposed class who are entitled to “substantial damage”, according to the trial.
United “denies any allegation of reprehensible acts and intends to defend the question vigorously,” a spokesperson said in a statement.
The shareholders have already attempted to take the company, a group of denominational investors proposing that Unitedhealth is investigating the impact of refusal of care on its business, the economy and patients in general. However, the Investors withdrew the proposal last month After Unitedhealth blocked it.