UnitedHealth Group Incorporated Plummets to 14th in Trading Volume as Lawsuits Mount and Stock Price Drops

On May 9, 2025, UnitedHealth Group Incorporated (UNH) experienced a trading volume of $31.92 billion, ranking 14th in the day's stock market activity. The company's stock price declined by 1.27%, marking the fourth consecutive day of losses, with a total decrease of 5.97% over the past four days.

UnitedHealth is currently facing multiple lawsuits from investors who allege that the company and its executives violated federal securities laws by making false and misleading statements. These lawsuits seek to recover damages on behalf of shareholders who purchased UnitedHealth's securities during specific periods, claiming that the company's financial guidance became misleading following the death of its CEO, Brian Thompson, in December 2024.

The lawsuits argue that UnitedHealth's financial outlook for 2025, released prior to Thompson's death, was rendered inaccurate by the subsequent turmoil and public scrutiny. The company's first-quarter 2025 results, released in April, significantly underperformed analysts' expectations, leading to a 12% reduction in the company's profit outlook for the year. This was attributed to unexpectedly high care costs for seniors in its Medicare Advantage plans, suggesting a potential shift in the company's utilization management processes.

Following the earnings release, UnitedHealth's stock price has fallen by 33%, erasing over $150 billion in market value. The company's stock is currently at its lowest level since the summer of 2021. UnitedHealth has denied any allegations of wrongdoing and intends to defend the matter vigorously. Shareholders have previously attempted to hold the company accountable, with a group of faith-based investors proposing an investigation into the impact of care denials on the company's business, the economy, and patients generally. However, this proposal was withdrawn after UnitedHealth blocked it.