A group of investors filed a class action lawsuit against UnitedHealthcare Group on Wednesday, alleging that the company misled them following the fatal shooting of its CEO, Brian Thompson. The lawsuit, lodged in the Southern District of New York, claims that UnitedHealthcare failed to update its 2025 net earnings forecast to account for the impact of Thompson’s death on the company’s operations.
The health insurance giant had issued its earnings guidance on December 3, just a day before Thompson was fatally shot. The forecast included a projected net earnings range of $28.15 to $28.65 per share and adjusted net earnings of $29.50 to $30.00 per share. Despite the tragedy, UnitedHealthcare did not revise this outlook when the public reaction to the killing significantly affected the company and the broader health insurance sector. The lawsuit contends that this omission was “materially false and misleading.”
The investors argue that the company failed to recognize that the public backlash in the wake of Thompson’s death would prevent the company from pursuing aggressive strategies necessary to meet its earnings targets. The lawsuit claims that by sticking to its original guidance, UnitedHealthcare was “deliberately reckless” in its approach to forecasting.
It wasn’t until April 17 that UnitedHealthcare revised its 2025 earnings outlook, citing a necessary shift in corporate strategy. This adjustment led to a significant drop in the company’s stock price, falling more than 22% on the same day.
The lawsuit seeks unspecified damages for the investors, who argue that the company’s failure to adapt its earnings projections was a clear misstep in handling the unforeseen tragedy.
Thompson’s shooting, which occurred on the streets of New York City in broad daylight, shocked the nation and sent ripples through the business community. The man accused of the crime, 27-year-old Luigi Mangione, has pleaded not guilty to both federal and state charges. As of Tuesday, the legal defense fund for Mangione had surpassed $1 million in donations. UnitedHealthcare has not yet responded to requests for comment regarding the lawsuit.
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