UnitedHealthcare has been unexpectedly sued for their CEO’s death last year in a bizarre move.
The CEO of UnitedHealthcare was shot and killed on December 4, 2024, in Midtown Manhattan, New York City.
Since then, the search and arrest of Luigi Mangione, the man who has been accused of the killing, has received widespread attention online.
The 27-year-old was found six days after the murder in a McDonald’s in Altoona, Pennsylvania.
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Later that month, Mangione was arraigned on 11 state criminal counts, including murder as an act of terrorism.
He has pleaded not guilty to the federal and state charges against him and a legal defense fund for his legal fees has now reached over $1 million in donations.
Now, in a new twist, a lawsuit has been filed with the US District Court for the Southern District of New York seeking class action.
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This lawsuit by investors accuses UnitedHealthcare, which is a health insurance company, for not adjusting its net earnings for 2025 to factor in how the murder of Thompson would impact operations.
The day before the CEO’s death, the firm announced net earnings of $28.15 to $28.65 per share and adjusted net earnings of $29.50 to $30.00 per share.
Then, on January 16, it revealed that it would be keeping the previous forecast.
Investors have since claimed that this is ‘materially false and misleading’, arguing that UnitedHealthcare failed to inform its shareholders that ‘it would have to adjust its strategy, which resulted in heightened denials compared to industry competitors’.
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What followed Thompson’s death was a huge backlash of public scrutiny against the company and the wider industry, according to the suit.
Now, the group of investors are seeking damages, which have not been made public, and are claiming that the backlash against the company stopped UnitedHealthcare from going after ‘the aggressive, anti-consumer tactics that it would need to achieve’ its financial targets.
In the lawsuit, it says: “As such, the Company was deliberately reckless in doubling down on its previously issued guidance.”
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The health insurance company did eventually amend its outlook for 2025 last month after admitting that it needed to shift its corporate strategy.
The move was made on April 17 and caused stock prices to fall by over 22% in one day.
Speaking to NBC News, a spokesperson for UnitedHealthcare said: “The company denies any allegations of wrongdoing and intends to defend the matter vigorously.”