UnitedHealth Group faces class action lawsuit over alleged anti-consumer strategy.

Saturday, Aug 2, 2025 10:57 am ET1min read

A class action lawsuit has been filed against UnitedHealth Group Incorporated due to alleged false and misleading statements regarding the company's corporate strategy of denying health coverage to boost profits. Investors who purchased UnitedHealth securities between December 3, 2024 and April 16, 2025 have until July 7, 2025 to apply to be appointed as lead plaintiff.

A class action lawsuit has been filed against UnitedHealth Group Incorporated (NYSE: UNH) due to alleged false and misleading statements regarding the company's corporate strategy. The lawsuit, filed in the United States District Court for the Southern District of New York, claims that UnitedHealth engaged in a strategy of denying health coverage to boost profits, which resulted in regulatory scrutiny and public outrage. Investors who purchased UnitedHealth securities between December 3, 2024, and April 16, 2025, have until July 7, 2025, to apply to be appointed as lead plaintiff in the lawsuit.

The lawsuit alleges that UnitedHealth made false and/or misleading statements and failed to disclose that:
1. The company had, for years, engaged in a corporate strategy of denying health coverage to boost profits and its share price.
2. This strategy resulted in regulatory scrutiny and public outrage.
3. Subsequent to the murder of Brian Thompson, many Americans celebrated his demise and demanded that UnitedHealth change its strategy.
4. The regulatory and public outrage caused UnitedHealth to change its corporate practices.
5. UnitedHealth recklessly stuck with its guidance the day before Thompson's murder, which was unrealistic considering the company's changing corporate strategies.
6. As a result, UnitedHealth's public statements were materially false and/or misleading at all relevant times.

When the true details entered the market, the lawsuit claims that investors suffered damages. Investors who purchased or otherwise acquired UnitedHealth shares and suffered a loss, or are long-term stockholders, are encouraged to contact Bragar Eagel & Squire, P.C., the law firm representing the investors, for more information.

UnitedHealth Group has been facing significant challenges, including a 60% decline in share price due to rising medical costs and a U.S. Department of Justice (DOJ) investigation regarding its Medicare billing practices. Despite these setbacks, the company has outlined a strategic plan to address these issues, including raising premiums for its Medicare Advantage plans and implementing changes to its Optum segment. The company's long-term growth prospects remain strong, with analysts predicting solid year-over-year earnings growth in 2026.

Investors should remain vigilant of the potential impact of the class action lawsuit and the company's ongoing challenges. While the stock's valuation is considered a bargain, investors should carefully assess the company's long-term prospects.

References:
[1] https://www.globenewswire.com/news-release/2025/07/28/3122922/0/en/UNITEDHEALTH-CLASS-ACTION-ALERT-Bragar-Eagel-Squire-P-C-Announces-that-a-Class-Action-Lawsuit-Has-Been-Filed-Against-UnitedHealth-Group-Incorporated-and-Encourages-Investors-to-Con.html
[2] https://www.ainvest.com/news/unitedhealth-group-stock-5-reasons-buying-brilliant-2508/
[3] https://www.globenewswire.com/news-release/2025/08/02/3126189/0/en/UNITEDHEALTH-CLASS-ACTION-ALERT-Bragar-Eagel-Squire-P-C-Reminds-Investors-that-a-Class-Action-Lawsuit-Has-Been-Filed-Against-UnitedHealth-Group-Incorporated-and-Encourages-Investor.html

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