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Home Legal

UnitedHealth Lawsuit by Shareholders Will Only Encourage More Deaths

by TheAdviserMagazine
7 months ago
in Legal
Reading Time: 4 mins read
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UnitedHealth Lawsuit by Shareholders Will Only Encourage More Deaths
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“If, tomorrow, I tell the press that, like, a gang banger will get shot, or a truckload of soldiers will be blown up, nobody panics, because it’s all “part of the plan”. But when I say that one little old mayor will die, well then everyone loses their minds. Introduce a little anarchy. Upset the established order, and everything becomes chaos. I’m an agent of chaos. Oh, and you know the thing about chaos? It’s fair!”

― The Dark Knight

United Health, its current CEO, Andrew Witty, and its CFO, John Rex, were sued by some of its shareholders for allegedly concealing how backlash from the shooting of former CEO Brian Thompson was damaging its business. The shareholders allege that United Health shifted away from strategies that led to higher-than-average claim denials without revealing the impact on profitability.

United Health shares fell 22.4% in April, wiping out $119 billion of market value after the company cut its 2025 forecast from $29.5-$30 to $26-$26.5. The suit claims that UnitedHealth had previously inflated its stock price by standing by its old forecast, even as mounting public anger and a US Senate report on claims denials caused the company to shift to become more patient-friendly.

Luigi Mangione, the named suspect in Thompson’s shooting, has pleaded not guilty to killing Thompson. Mangione has become a hero to some Americans who were denied claims, or have loved ones who were denied coverage for medical treatments by healthcare insurers.

On May 12, 2025, UnitedHealth’s current CEO, Andrew Witty, resigned from his position.

Allegations of Fraud

The lawsuit is about United Health allegedly misleading the public, and its own shareholders, into believing that the shooting and its insuring controversy did not impact its policies or its profits. However, senior equity analysts atBernstein commented that:

“For United, what they’re probably doing is changing the way in which they interact with their consumers, and they’re trying to slowly reset what that expectation is [from United as a health insurer.] And that is probably having a bigger impact than they had expected on levels of utilization.”

If UnitedHealth changed its policies in response to Thompson’s death and the resulting public fallout, it should have been honest about such changes. Most normal people would not have blamed UnitedHealth for doing so, and anyone who expected otherwise would garner no real support. So it seems odd that UnitedHealth’s initial earnings report after the shooting is that it didn’t impact its policies – it was essentially business as usual until about April 2025.

Tone Death

The lawsuit is about fraud, but unfortunately, it perpetuates a very real problem with America right now: business executives are incentivized and encouraged to make all the wrong decisions. CEOs like Thompson are awarded with multi-million dollar salaries to make companies more profitable, even if that profit comes at the expense of ordinary people. This latest lawsuit serves as more of the same, essentially punishing the company for attempting to become more patient friendly. The underlying allegations may be about fraud, but the message inside and out of United Health will continue to be profit instead of people.

In case there was any doubt about the message this lawsuit was sending, here is an excerpt from the complaint:

“In the wake of Mr. Thompson’s murder, the reaction was not uniformly sympathetic to Mr. Thompson, who was a father. Instead, Mr. Thompson and UnitedHealth became the target of harsh criticism from politicians, medical professionals, and consumers.”

The author of the complaint seems almost surprised that the world would not be uniformly sympathetic, in part because Mr. Thompson was a father. This is blatant emotional manipulation that serves no real purpose in supporting the allegations of fraud.

People are upset because United Health didn’t care when their fathers were denied medical care. United Health turned a blind eye because it was all part of the greater plan for profit. But when one CEO dies, “everyone loses their minds.”

UnitedHealth should have been more transparent about the impact the shooting had on the company. However, this lawsuit will likely push UnitedHealth back on the path that led to Thompson’s death in the first place.

Do I Need a Criminal Defense Lawyer?

A criminal defense attorney can help you build your case and can represent you during all the phases of a murder or manslaughter trial. The emotional benefits include some sense of relief that your attorney is on your side.



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