Judge Narrows UnitedHealth Shareholder Lawsuit Over Earnings Claims
UnitedHealth Group Inc. must face a narrowed lawsuit from CalPERS over claims it misled investors about transactions that boosted 2024 earnings.
U.S. District Judge Jeffrey Bryan ruled that UnitedHealth Group Inc. must face a narrowed shareholder lawsuit brought by the California Public Employees’ Retirement System (CalPERS). The court allowed CalPERS to proceed with specific claims that the health insurer misled investors regarding financial transactions that added $3.3 billion to the company's 2024 earnings.
Judge Bryan dismissed the majority of the complaint with prejudice, including allegations of insider trading, the misuse of medical upcoding, and wide-ranging misconduct spanning four years. The lawsuit names several executives as defendants, including former CEOs Stephen Hemsley and Andrew Witty, and the late Brian Thompson.
UnitedHealth described the litigation as "baseless" and expressed satisfaction that the court dismissed most of the alleged misstatements. The legal challenge follows a period of instability for the company, marked by federal probes, a massive cyberattack, and a 2025 stock plunge after the insurer missed profit expectations. Following the ruling, UnitedHealth shares closed down 2.1% in New York.
