UnitedHealthcare, one of the nation’s largest health insurers, finds itself the target of a new class action lawsuit. The full case has now been filed in the Southern District of New York. The lawsuit makes some extremely credible and damning accusations against the company. These complaints are centered on its response after the senseless shooting of its CEO, Brian Thompson, on December 4. Shareholders allege that UnitedHealthcare did not update its 2025 net earnings forecast as soon as reasonably possible following the event.
The lawsuit highlights that UnitedHealthcare did not revise its 2025 earnings forecast until April 17, several months after Thompson’s death. During that revision, the company cited a necessary shift in corporate strategy, which investors argue reflects a lack of urgency in addressing the impact of Thompson’s killing on the company’s operations. Immediately after the news broke, UnitedHealthcare’s stock price plummeted, dropping more than 22%. This stunning decline coincided with the timing of the company’s announcement of its revised guidance.
On December 3, only days before Thompson’s passing, UnitedHealthcare announced its outlook including forecasted individual profits of between $28.15 and $28.65 per share. They announced their second quarter adjusted net earnings to be in a range of $29.50 to $30.00 per share. Shareholders argue that this guidance was released with complete disregard for what would be the consequences of Thompson’s unfortunate death.
Luigi Mangione, a now-27-year-old, is charged with killing Thompson. He has entered not-guilty pleas to both the federal and the state charges related to the crash. Shareholders have accused UnitedHealthcare’s management of “deliberate recklessness.” Second, they argue that management ought to have lowered its outdated full-year guidance given the deep disruption from Thompson’s death.
“As such, the Company was deliberately reckless in doubling down on its previously issued guidance.” – Investors
Just last month, UnitedHealthcare reaffirmed its already record-high earnings projections. This announcement made investors question the company’s decision-making process after last week’s turn of events. The shareholders are not happy. They have called the Innisfree example company’s possible adoption of “aggressive, anti-consumer tactics” the top concern in the race to hit financial targets.
“The aggressive, anti-consumer tactics that it would need to achieve.” – Investors
This class action lawsuit strikes UnitedHealthcare at a most pivotal time. Now, facing the repercussions of Thompson’s premature passing, the company is ensuring that it is doing what it can to sure up its operations and keep investors happy.