Class Action Lawsuit against UnitedHealth Group, Inc. (NYSE:UNH)

A class action lawsuit has been filed against UnitedHealth Group, Inc. (NYSE:UNH) on May 14, 2024. The plaintiffs (shareholders) alleged that they purchased UNH shares at artificially inflated prices between March 14, 2022 and February 27, 2024 (the lawsuit period) and are now seeking compensation for their financial losses. Investors who purchased UnitedHealth shares during this period can click here to learn more about the opportunity to join the lawsuit.

UnitedHealth is considered one of the largest health insurers in the world based on revenue. UNH operates in two segments: UnitedHealthcare offers a variety of insurance plans, including Medicaid, Medicare, medical and dental insurance, and group plans for businesses. The Optum segment is a technology-enabled healthcare services platform that offers data analytics, healthcare services, and pharmaceutical care.

Plaintiffs allege that UNH and three of its officers and/or directors (Individual Defendants) deceived investors by lying and withholding material information about the Company’s business practices during the Class Period. Specifically, Defendants are accused of concealing truthful information about the separation of business units from SEC filings and similar materials.

The information became clear on February 27, when the Wall Street Journal reported that the Department of Justice (DOJ) had reopened its antitrust investigation into UnitedHealth. According to the lawsuit, this was the first time the public had learned of the DOJ’s investigation into the relationships between Optum and the various segments of UnitedHealthcare.

To give an example, UnitedHealth’s Change Healthcare (part of Optum) was the victim of a cyberattack in February that resulted in a complete shutdown of operations for seven days. The attack put the data of millions of Americans at risk. UNH acquired Change Healthcare in October 2022 and integrated it into the Optum unit.

Interestingly, during the complaint process, UNH has repeatedly stated that it has adequate and robust firewalls in place between units “to protect sensitive customer data and to provide customers with information to review these firewall processes.” The company also emphasized that these firewalls, cybersecurity and data security policies prevent any inappropriate sharing of data with outsiders, thus protecting customers’ data.

According to the class action lawsuit, UNH caused its shares to trade at artificially inflated prices by knowingly and negligently misleading investors about the company’s business practices during the Class Period.

Notably, UNH stock has lost more than 7% so far in 2024, impacting shareholder returns.

Notice