UnitedHealth Group (UNH) Shares Sharply Down Again After CEO Resignation, 2025 Guidance Suspension; Securities Class Action Pending

Core Viewpoint - UnitedHealth Group's stock price plummeted by $65.71 (-17%) following the resignation of CEO Andrew Witty and the withdrawal of its 2025 guidance, which was issued less than a month prior [1] Group 1: Company Developments - The resignation of CEO Andrew Witty and the withdrawal of the 2025 guidance led to a significant drop in UnitedHealth's share price [1] - A securities class action lawsuit has been filed against UnitedHealth after approximately $170 billion of its market capitalization was lost on April 17, 2025 [2] - The lawsuit claims that UnitedHealth made false and misleading statements regarding its financial guidance for FY 2025, which was initially set at a net EPS of $28.15 to $28.65 and adjusted EPS of $29.50 to $30.00 [3][4] Group 2: Financial Impact - Following the announcement on April 17, 2025, UnitedHealth's share price fell by 22%, reflecting investor reaction to the slashed guidance [5] - The revised guidance on April 17 indicated a net EPS of $24.65 to $25.15 and adjusted EPS of $26.00 to $26.50, significantly lower than previous estimates [4] Group 3: Corporate Strategy and Public Perception - UnitedHealth has faced scrutiny for its corporate strategy of denying health coverage to boost profits, which has led to public outrage and regulatory scrutiny [6] - The murder of Brian Thompson, the CEO of UnitedHealthcare, on December 4, 2024, intensified negative sentiment towards UnitedHealth, with many Americans expressing animosity towards the company [6] - Despite the changing corporate strategies in response to public pressure, UnitedHealth continued to issue unrealistic financial guidance [6]