The California Public Employees’ Retirement System (CalPERS), the country’s largest public pension fund, has amended its lawsuit against UnitedHealth Group, accusing the company’s leaders of concealing illegal behavior to continue profiting from selling stock. The lawsuit, originally filed in May, was updated last week in the U.S. District Court of Minnesota, referencing STAT’s Health Care’s Colossus series and recent government investigations.
CalPERS, a shareholder of UnitedHealth, filed the proposed class-action case on behalf of those who purchased UnitedHealth stock between September 22, 2021, and February 20, 2025. The pension fund claims that UnitedHealth engaged in an illegal scheme to upcode Medicare Advantage patients without disclosing the risks involved. Instead, the company’s leaders allegedly touted strong Medicare Advantage performance during earnings calls, artificially inflating the stock price.
The lawsuit alleges that UnitedHealth’s executives prioritized their financial gains over the interests of stockholders, leading to violations of federal securities laws. Despite media reports and government investigations exposing the company’s questionable practices, UnitedHealth’s leaders allegedly kept this information hidden to continue making millions from stock sales.
UnitedHealth, a Minnesota-based conglomerate with over $400 billion in revenue last year, has faced scrutiny for its handling of Medicare Advantage patients and potential fraudulent activities. The lawsuit highlights the company’s alleged misconduct and seeks to hold its leaders accountable for their actions.
As the legal battle between CalPERS and UnitedHealth unfolds, the outcome could have significant implications for both the company and its shareholders. The allegations of illegal behavior and stock manipulation raise concerns about corporate governance and transparency within UnitedHealth, prompting investors to closely monitor the developments of the case.
In conclusion, the amended lawsuit filed by CalPERS against UnitedHealth Group sheds light on the company’s alleged misconduct and deceptive practices. The ongoing legal proceedings will determine the accountability of UnitedHealth’s leaders and the impact of their actions on shareholders. Stay tuned for updates on this high-profile case as it unfolds in the U.S. District Court of Minnesota.
