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Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against UnitedHealth Group Inc. (UNH)
Globe Newswire 15-May-2024 3:57 PM
NEW YORK, May 15, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Minnesota on behalf of all persons or entities who purchased or otherwise acquired UnitedHealth Group Inc. ("UnitedHealth" or the "Company") (NYSE:UNH) securities between March 14, 2022 and February 27, 2024, inclusive (the "Class Period"). The lawsuit seeks to recover damages for the Company's investors under the federal securities laws.
The Complaint in the lawsuit alleges that during the Class Period, UnitedHealth never established proper firewalls between Optum and UnitedHealthcare as required by its own policy, and as it represented in a prior antitrust action, to the Court, the Department of Justice (DOJ) and investors it would do. The Complaint also alleges that firewalls were never properly created for certain business applications. The Complaint further alleges that despite assurances to the contrary, there was never a meaningful technological separation between Optum and UnitedHealthcare that prevented the sharing of customer sensitive information (CSI).
The Complaint further alleges that the truth emerged on February 27, 2024, when the Wall Street Journal (WSJ) reported that the DOJ had re-opened its antitrust investigation into UnitedHealth. The Complaint alleges that in this WSJ article, the public learned for the first time that the DOJ was investigating the relationships between the Company's various segments, including Optum. As a result of this disclosure, the Complaint alleges that the price of UnitedHealth stock declined by $27 per share, erasing nearly $25 billion in shareholder value.
The Complaint further alleges that UnitedHealth was aware of the DOJ investigation since at least October 2023. The Complaint also alleges that instead of disclosing this material investigation to investors or the public, UnitedHealth insiders sold more than $120 million of their personally held UnitedHealth shares. In addition, the Complaint alleges that in the four months between learning about the DOJ investigation and the investigation becoming public, UnitedHealth's Chairman Stephen Hemsley sold over $102 million of his personally held UnitedHealth shares and Brian Thompson, the CEO of UnitedHealthcare, sold over $15 million of his personally held UnitedHealth shares.
Investors who purchased or otherwise acquired shares of UnitedHealth should contact the Firm prior to the July 15, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
