UnitedHealth Group Accused Of Misleading Investors After CEO’s Killing

An investor is suing UnitedHealth Group, accusing the company of misleading shareholders by not disclosing how it would be affected by the backlash following UnitedHealthcare CEO Brian Thompson’s killing.

Thompson, 50, was shot to death outside a Manhattan hotel on Dec. 4. Since the arrest of his accused killer, Luigi Mangione, on Dec. 9, the 27-year-old Ivy League graduate has cultivated a massive following as he faces state and federal charges in Thompson’s death.

U.S. Attorney General Pam Bondi said prosecutors are seeking the death penalty in Mangione’s federal case. He continues to gain support, with his crowdfunded legal defense fund surpassing $1 million on Tuesday.

However, while Mangione has received public support, UnitedHealthcare and other health insurers have faced scrutiny following Thompson’s killing, with many criticizing the U.S. health care system as a whole.

On top of the public backlash, UnitedHealthcare was also facing scrutiny from the United States Senate, which highlighted the company’s coverage denials in the weeks leading up to Thompson’s killing, according to the lawsuit filed by investor Roberto Faller on Wednesday.

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

Faller’s lawsuit filed in the Southern District of New York noted that on Dec. 3, a day before Thompson’s killing, UnitedHealth Group projected a net earning of $29.50 to $30.00 per share.

But the company never told investors how it planned to adjust its strategy in the wake of Thompson’s killing to account for the public backlash and government scrutiny, the lawsuit alleged. By Jan. 16, UnitedHealth Group announced that it would be reaffirming December’s projections, which Faller’s lawsuit alleged was materially false and misleading because the company was no longer willing to “use the aggressive, anti-consumer tactics” to achieve its earnings goals.

By April, UnitedHealth Group announced it would be shifting its strategy by allowing increased coverage and care for beneficiaries of Medicare Advantage. The health insurance company’s stock prices dropped approximately 22% following the announcement.

Faller’s lawsuit seeks class action certification and unspecified damages for shareholders who purchased UnitedHealth Group stocks between Dec. 3, 2024, and April 16, 2025.

UnitedHealth Group did not immediately respond to a request for comment from HuffPost but told NBC News that “the company denies any allegations of wrongdoing and intends to defend the matter vigorously.”