UnitedHealth Group (UNH) Faces Securities Class Action After $170 Billion Shareholder Value Wiped Out – Hagens Berman

/EIN News/ -- SAN FRANCISCO, May 12, 2025 (GLOBE NEWSWIRE) -- A securities class action lawsuit styled Faller v. UnitedHealth Group Inc., et al., No. 1:25-cv-03799 (S.D.N.Y.) was filed, after roughly $170 billion of the UnitedHealth (NYSE: UNH) market capitalization was erased on April 17, 2025 following disappointing Q1 2025 financial results and slashed FY 2025 guidance. The lawsuit seeks to represent investors who purchased UnitedHealth securities between December 3, 2024 and April 16, 2025.

Hagens Berman urges UnitedHealth investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

Class Period: Dec. 3, 2024 – Apr. 16, 2025
Lead Plaintiff Deadline: July 7, 2025
Visit: www.hbsslaw.com/investor-fraud/unh
Contact the Firm Now: UNH@hbsslaw.com | 844-916-0895

UnitedHealth Group Inc. (UNH) Securities Class Action:

The lawsuit challenges UnitedHealth’s statements concerning its business and forecasting practices, including those within its Medicare Advantage business.

More specifically, the lawsuit focuses on the propriety of UnitedHealth’s guidance for FY 2025 net EPS of $28.15 to $28.65 and adjusted EPS of $29.50 to $30.00. The company first provided this guidance on December 3, 2024 and then reiterated it on January 16, 2025.

The complaint alleges that UnitedHealth made false and misleading statements while failing to disclose crucial information to investors. The lawsuit claims that:

• UnitedHealth had, for years, engaged in a corporate strategy of denying health coverage in order to boost profits and its share price;
• This anti-consumer (and at times unlawful) strategy resulted in Senate and regulatory scrutiny over- and public angst against- UnitedHealth, and allegedly led to the murder of Brian Thompson, the CEO of UnitedHealthcare (the insurance arm of UnitedHealth), on December 4, 2024;
• Animus toward UnitedHealth was such that, after the murder of Mr. Thompson, many Americans openly celebrated his demise, praised his killer, and/or otherwise demanded that UnitedHealth change its strategy even if they condemned Mr. Thompson’s killing;
• The foregoing regulatory and public outrage caused UnitedHealth to change its corporate practices of heightened coverage denials; and
• Notwithstanding the foregoing, UnitedHealth recklessly reiterated the guidance first given on December 3, 2024, the day before Mr. Thompson’s murder, which was unrealistic considering the company was changing its corporate strategies.
  

Investors learned the truth on April 17, 2025, when UnitedHealth slashed the aforementioned guidance to net EPS of $24.65 to $25.15 and adjusted EPS of $26.00 to $26.50, and blamed the cuts on sudden increased care utilization among Medicare Advantage members.

This news sent the price of UnitedHealth shares crashing 22% lower on April 17, 2025, with one analyst reportedly commenting “‘[w]hat that would suggest to me is that United and maybe the industry pulling back on prior authorizations, on the kind of the, intensity of some of the activity they do to manage utilization which obviously causes a bunch of consumer dissatisfaction.’”

“We’re investigating whether, unknown to investors, UnitedHealth may have quietly changed its corporate strategies in its utilization management and, if so, whether that should have reasonably been taken into account when twice issuing its 2025 guidance,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in UnitedHealth and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now.

If you’d like more information and answers to frequently asked questions about the UnitedHealth Group case and our investigation, read more.

Whistleblowers: Persons with non-public information regarding UnitedHealth should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email UNH@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895