UnitedHealth Slammed With Another Lawsuit Over $119 Billion Stock Plunge

Core Viewpoint - UnitedHealth Group, Inc. is facing increased legal challenges as shareholders file multiple lawsuits related to a federal investigation into the company's Medicare billing practices, which were highlighted in a Wall Street Journal report [1][3]. Summary by Sections Legal Actions - Steve Silverman, a long-time shareholder, has filed a derivative lawsuit in federal court, claiming that UnitedHealth's leadership has harmed the company through questionable billing practices [2]. - The lawsuit accuses CEO Stephen Hemsley, former CEO Andrew Witty, and board members of engaging in practices that led to inflated reimbursements, significantly impacting the company's financial results and stock price [3][4]. - Other shareholders have also filed lawsuits, with one alleging that Hemsley and Witty profited from stock sales before the DOJ investigation became public [5][6]. Financial Impact - The lawsuits focus on the profitability of UnitedHealth's Medicare business, which has drawn negative attention and affected its stock price [6]. - Allegations include that the company repurchased $7.3 billion in stock at inflated prices while executives profited from share sales during the undisclosed DOJ investigation [9]. Company Challenges - UnitedHealth is currently navigating a series of challenges, including ongoing lawsuits, a DOJ investigation, regulatory changes, and leadership changes following the resignation of CEO Andrew Witty [7][10]. - The company's stock has seen a significant decline, falling over 40% year-to-date, with shares trading at $302.10 at the time of the report [11].