UNH Investors with Losses Encouraged to Contact the Firm
SAN FRANCISCO, May 29, 2025 (GLOBE NEWSWIRE) — Shares of UnitedHealth Group (NYSE: UNH), the nation’s largest health insurer, fell sharply on May 21, after a British newspaper reported that the company had made undisclosed payments to nursing homes in an effort to reduce hospital transfers, intensifying the scrutiny facing the healthcare conglomerate.
The allegations add to UnitedHealth’s woes, as the company had to grapple with the filing of a securities fraud class action, the abrupt departure of its CEO, and reports of criminal and civil probes on company’s practices.
Hagens Berman is investigating the securities fraud claims alleged in the pending suit and urges UnitedHealth investors who suffered substantial losses to submit your losses now.
| 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 |
Allegations of Secret Payments and Patient Harm
On May 21, The Guardian reported that UnitedHealth deployed medical teams to nursing facilities across the United States and offered bonuses to limit hospitalizations among Medicare Advantage enrollees, as part of a wider cost-cutting initiative. According to internal documents and whistleblower accounts cited by the newspaper, these financial incentives sometimes resulted in delayed or averted transfers for patients who might have benefited from immediate hospital care. In one case, a patient reportedly suffered permanent brain damage after a delayed transfer for a suspected stroke.
The Guardian’s reporting has added to a series of setbacks for the company, which is already contending with regulatory investigations and legal challenges.
Pending Securities Class Action
The company is the subject of a securities class action suit in the U.S. District Court for the Southern District of New York, brought on behalf of investors who purchased UnitedHealth securities. The complaint alleges that the company engaged in a strategy of improperly denying health coverage to boost profits, drawing regulatory scrutiny and public criticism. The suit, captioned Faller v. UnitedHealth Group Incorporated, asserts violations of federal securities laws.
The complaint alleges that the truth emerged on April 17, 2025, when UnitedHealth significantly reduced its full year 2025 financial guidance which it attributed, in part, to “[h]eightened care activity indications within UnitedHealthcare’s Medicare Advantage business, . . . far above the planned 2025 increase” that “was most notable within physician and outpatient services.” On this news, the price of UnitedHealth stock declined more than 22%, from $585.04 per share on April 16, 2025, to $454.11 per share on April 17, 2025.
CEO Departure and Regulatory Scrutiny
Since the filing of the suit, turmoil has only deepened. On May 13, UnitedHealth announced the abrupt departure of its chief executive, Andrew Witty, and suspended its 2025 fiscal guidance, sending shares down more than 10 percent that day.
The Wall Street Journal has also reported that federal authorities are investigating whether UnitedHealth pressured clinicians to record diagnoses that would make Medicare Advantage patients appear sicker than they were, a practice known as “upcoding,” which can result in higher federal payments.
Hagens Berman’s Investigation
Shareholder rights law firm Hagens Berman is actively investigating the securities fraud claims alleged in the pending suit against UnitedHealth. Reed Kathrein, the partner leading the investigation, commented on the mounting scrutiny:
“The Guardian’s reporting raises new and troubling questions about UnitedHealth’s commitment to patient care and transparency. Investors deserve clear answers about whether cost-cutting measures came at the expense of patient well-being.”
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
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