Shareholders Sue UnitedHealth Group Over Governance and Security Lapses

Länsförsäkringar Fondförvaltning AB filed an amended derivative lawsuit against UnitedHealth Group Inc. and its board members in a Minnesota federal court. The Swedish asset manager alleges that company leadership ignored governance and oversight risks for years, resulting in billions of dollars in investor losses.

The complaint specifically names CEO and board chair Stephen Hemsley and former CEO Andrew Witty as defendants. Plaintiffs claim the board intentionally shut down an internal audit program that had identified 200 million dollars in unsupported Medicare payments. The suit further alleges that the board concealed the financial impact of a federal Medicare risk model change from 2023 until 2025, when an 11 billion dollar cost was finally disclosed.

Additionally, the lawsuit links corporate negligence to the 2024 Change Healthcare data breach, which exposed the private data of 190 million Americans. The plaintiffs assert that a rushed integration of Change Healthcare left the company vulnerable to the attack. The lawsuit seeks the removal of the defendants from their officer or director roles and a court order to implement improved compliance programs and corporate governance.