Economic Rules Hub
  • World
  • Politics
  • Business
  • Investing
Home Business UnitedHealthcare sued by shareholders over reaction to CEO’s killing
Business

UnitedHealthcare sued by shareholders over reaction to CEO’s killing

by admin May 9, 2025
May 9, 2025

A group of investors sued UnitedHealthcare Group on Wednesday, accusing the company of misleading them after the killing of its CEO, Brian Thompson.

The class action lawsuit — filed in the Southern District of New York — accuses the health insurance company of not initially adjusting their 2025 net earning outlook to factor in how Thompson’s killing would affect their operations.

On Dec. 3 — a day before Thompson was fatally shot — the company issued guidance that included net earnings of $28.15 to $28.65 per share and adjusted net earnings of $29.50 to $30.00 per share, the suit notes. And on January 16, the company announced that it was sticking with its old forecast.

The investors described this as “materially false and misleading,” pointing to the immense public scrutiny the company and the broader health insurance industry experienced in the wake of Thompson’s killing.

The group, which is seeking unspecified damages, argued that the public backlash prevented the company from pursuing ‘the aggressive, anti-consumer tactics that it would need to achieve’ its earnings goals.

‘As such, the Company was deliberately reckless in doubling down on its previously issued guidance,’ the suit reads.

The company eventually revised its 2025 outlook on April 17, citing a needed shift in corporate strategy — a move that caused its stock to drop more than 22% that day.

‘The company denies any allegations of wrongdoing and intends to defend the matter vigorously,’ a UnitedHealthcare spokesperson said in a statement.

Thompson’s fatal shooting on the streets of New York City in broad daylight sent shockwaves across the nation.

Luigi Mangione, the 27-year-old man accused of the killing, has pleaded not guilty to federal and state charges against him. The legal defense fund for Mangione surpassed the $1 million mark in donations on Tuesday.

This post appeared first on NBC NEWS

0
FacebookTwitterPinterestEmail
previous post
October 7 families demand to know the number of Gaza hostages still alive, after Trump said 3 more have died
next post
US Policy Momentum, Clinical Progress Fueling Psychedelics Market in 2025

Related Posts

Procter & Gamble to cut 7,000 jobs as part of...

June 7, 2025

Shein and Temu see U.S. demand plunge as loophole for...

June 6, 2025

This California startup is cleaning water and removing CO₂ from...

June 6, 2025

Nationwide coordinated retail crime crackdown results in hundreds of arrests,...

June 5, 2025

McDonald’s Snack Wrap is officially making a permanent return

June 5, 2025

OpenAI tops 3 million paying business users, launches new features...

June 5, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • Israel confirms it is arming Hamas rivals in operation opposition calls ‘complete madness’

      June 7, 2025
    • How the US could be vulnerable to the same kind of drone swarm attack Ukraine unleashed on Russia’s bomber fleet

      June 7, 2025
    • Video of man carrying suspicious bundle after his employee’s death fuels femicide outrage in Mexico

      June 7, 2025
    • Carney invites Modi to G7 summit despite strained ties between Canada and India

      June 7, 2025
    • Kharkiv hit by ‘most powerful attack’ of entire war, mayor says, as Russia pounds Ukraine again

      June 7, 2025

    Categories

    • Business (1,394)
    • Investing (3,407)
    • Politics (4,556)
    • World (4,465)
    • Email Whitelisting
    • Terms and Conditions
    • Privacy Policy
    • Contacts
    • About us

    Disclaimer: EconomicRulesHub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 EconomicRulesHub.com | All Rights Reserved

    Economic Rules Hub
    • World
    • Politics
    • Business
    • Investing