UnitedHealth Group is under legal fire as investors allege the company misled them in the wake of CEO Brian Thompson’s killing in December 2024. A proposed class action lawsuit filed in the Southern District of New York claims UnitedHealth failed to disclose the financial and reputational fallout stemming from both the public backlash over its aggressive claims denial practices and the broader outrage following Thompson’s death. Investor Roberto Faller, who is leading the complaint, argues that UnitedHealth “artificially inflated” its stock by initially projecting strong 2025 earnings per share of $29.50 to $30 and reaffirming those figures in January—even as controversy and scrutiny mounted.
The lawsuit gained traction after UnitedHealth cut its profit forecast to a significantly lower range of $26 to $26.50 per share, leading to the company’s worst one-day stock drop in more than 25 years. The complaint paints a picture of corporate mismanagement and omission, claiming that shareholders were kept in the dark about the need for strategic shifts that contributed to a spike in claim denials. With key executives, including CEO Andrew Witty and CFO John Rex, named as co-defendants, and the stock plunge dragging down the Dow Jones by 1.3%, this lawsuit may mark a turning point in investor accountability for corporate transparency. The court has yet to determine whether the case will proceed as a class action.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.
