UnitedHealth concealed how backlash from CEO Brian Thompson's killing was hurting profit: shareholder lawsuit

Core Viewpoint - UnitedHealth Group is facing a lawsuit for allegedly concealing the negative impact of the killing of its CEO on its business, which led to a significant drop in its stock price after a lowered 2025 profit outlook [1][2]. Group 1: Lawsuit Details - A proposed class action was filed in Manhattan federal court, claiming that shareholders were defrauded following the December 4 shooting of CEO Brian Thompson [2]. - The lawsuit seeks unspecified damages for shareholders from December 3, 2024, to April 16, 2025, with CEO Andrew Witty and CFO John Rex also named as defendants [5]. Group 2: Stock Performance and Financial Impact - UnitedHealth shares plummeted by 22% on April 17, resulting in a loss of approximately $119 billion in market value after the company revised its 2025 adjusted profit per share forecast down to between $26 and $26.50 from a previous range of $29.50 to $30 [3][4]. - The company attributed the lowered forecast to increased costs in its Medicare business, having issued the prior forecast just one day before Thompson's death [4]. Group 3: Allegations of Misleading Information - Shareholders allege that UnitedHealth inflated its stock price by maintaining its old forecast despite growing public backlash and a Senate report on claims denials, which pressured the company to adopt more patient-friendly practices [4][10].