The California Public Employees’ Retirement System (CalPERS), the country’s largest public pension fund, has amended its lawsuit against UnitedHealth Group, alleging that the company’s leaders have been concealing illegal behavior for years in order to profit from selling stock. The lawsuit, originally filed in May, was updated last week in the U.S. District Court of Minnesota, drawing extensively from STAT’s Health Care’s Colossus series and recent developments, including a government watchdog report and a second Justice Department investigation into UnitedHealth.
CalPERS, a shareholder in UnitedHealth, has filed a proposed class-action case on behalf of individuals who purchased UnitedHealth stock between Sept. 22, 2021 and Feb. 20, 2025. The pension fund, with over 2 million members and more than $500 billion in assets under management, alleges that UnitedHealth engaged in an illegal scheme to upcode Medicare Advantage patients without disclosing the risks involved. Instead, the company’s leaders allegedly used earnings calls to promote UnitedHealth’s strong Medicare Advantage performance, artificially inflating its stock.
The lawsuit claims that UnitedHealth cheated its stockholders and violated federal securities laws by failing to disclose the true nature of its practices. The amended complaint points to a pattern of behavior where UnitedHealth’s leaders prioritized their own financial gains over the interests of investors. The lawsuit seeks to hold the company accountable for its actions and recover damages on behalf of affected shareholders.
This case underscores the importance of transparency and accountability in the healthcare industry, particularly when it comes to the financial practices of large corporations like UnitedHealth. As the legal proceedings continue, it will be crucial to monitor how the company responds to these allegations and what impact it may have on its reputation and financial standing in the market.
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