UnitedHealth Group is facing an amended shareholder lawsuit accusing the insurer of knowing about serious governance issues and doing little to ensure compliance, leading to significant losses in stock value. The suit was filed in a Minnesota federal court by the Employees’ Retirement System of the State of Rhode Island and Länsförsäkringar Fondförvaltning AB, a Swedish asset manager. Plaintiffs blame the board and senior company officers, alleging the company built its industry-leading earnings on a foundation of systemic wrongdoing and illegality, including defrauding the federal Medicare program, denying medically necessary care, deceiving a federal court, violating patient privacy laws, unlawfully suppressing competition, and manipulating earnings. The suit contends that defendants issued false and misleading statements in SEC filings, on earnings calls, and in four successive proxy statements, keeping the stock trading at artificially inflated prices while the company repurchased billions of dollars of its own shares. UnitedHealth reached an all-time closing high of $599.78 on November 11, 2024, and closed Wednesday at $405.59, after closing as low as $259.02 on March 27 of this year.
UnitedHealth Group IncorporatedShareholder lawsuit alleges governance failures and systemic wrongdoing, including fraud and compliance issues.
