A proposed class action lawsuit has been filed in Manhattan federal court by shareholders against UnitedHealth. They allege the insurer defrauded investors after the shooting of UnitedHealthcare CEO Brian Thompson on December 4, by shifting strategies that previously led to higher-than-average claims denials without disclosing the impact on profitability. On April 17, UnitedHealth shares dropped 22.4%, erasing approximately $119 billion in market value, following a reduction in its 2025 adjusted profit forecast. The insurer cited increased costs in its Medicare business, which was announced just one day after Thompson’s death. UnitedHealth has not yet commented on the lawsuit. The case seeks damages for shareholders affected between December 3, 2024, and April 16, 2025, naming CEO Andrew Witty and CFO John Rex as defendants. Luigi Mangione, who has pleaded not guilty to Thompson’s murder, has become a symbol for some Americans dissatisfied with for-profit health insurers.
— new from Reuters
