UnitedHealthcare CEO Brian Thompson faced a lawsuit accusing him and other executives of insider trading in connection with an ongoing Justice Department investigation before he was fatally shot outside a New York City hotel on Wednesday.
Thompson, 50, was one of three UnitedHealth Group executives named in a class action lawsuit filed in May accusing them of dumping millions of dollars worth of stock while the company was the subject of a federal antitrust investigation, which investors say was not immediate. announced to the shareholders.
“UnitedHealth was aware of the DOJ investigation since at least October 2023. Rather than disclose this material investigation to investors or the public, UnitedHealth insiders sold more than $120 million of their personally held UnitedHealth stock,” according to the complaint filed by the City of Hollywood Firefighters. ‘, claims the Pension Fund.
This undated photo from UnitedHealth Group shows Brian Thompson, CEO of UnitedHealthcare. UnitedHealth Group via AP
Nearly $25 billion in shareholder value was wiped out when the investigation was publicly revealed in February. However, Thompson was able to sell more than $15 million of his own UnitedHealth stock before its value dropped, the lawsuit said.
It was the first time Thompson sold shares since becoming CEO of the company’s insurance division in 2021, Crain’s New York Business reported in April.
Attorneys representing Thompson in the lawsuit did not immediately respond to HuffPost’s request for comment on Thursday.
Police have not identified a suspect or possible motive for the shooting as of Thursday morning. The killer was able to get away on a bicycle, although they reportedly left shell casings at the scene with the words “deny,” “defend” and “depose” on them, law enforcement sources told ABC and NBC News.
These words resemble a three-word tactic that insurance companies are often accused of using to deny insurance services and payments. The phrase “Delay, Deny, Defend” is also the title of a 2010 book that reportedly exposes insurance injustice and explains how consumers and lawmakers can fight back.
Brian Thompson, 50, was shot outside the New York Hilton early Wednesday morning. The CEO of one of the largest health insurers in the United States has been killed in a suspected targeted attack, police said. BRYAN R. SMITH via Getty Images
Thompson’s wife, Paulette, told NBC News on Wednesday that her husband had been the subject of threats related to a lack of medical coverage.
“I don’t know the details. All I know is that he said there were people threatening him,” she told the outlet.
Despite the threats, she said, her husband did not change his travel routine.
The couple share two sons and had lived separately in Minneapolis for several years, The Wall Street Journal reported, citing property records, voter registration records and neighbors. Thompson was in New York for an annual investor conference.
The DOJ’s investigation has focused on potential conflicts between the company’s insurance division and Optum’s health care unit, including favoritism toward the physician groups acquired by Optum and challenges imposed on rival health insurers, as The Wall Street Journal reported.
The suspect wanted in the murder of UnitedHealthcare CEO Brian Thompson is seen in New York on Wednesday morning. via Associated Press
UnitedHealth Group is under constant scrutiny by the DOJ over concerns about monopolization in the healthcare market.
Last month, the DOJ filed a lawsuit to block UnitedHealth Group’s purchase of rival home health and hospice company Amedisys, arguing that the merger would reduce competition and the number of health and hospice services in the US.
UnitedHealth Group accused the DOJ of “overreacting” and vowed to fight the lawsuit.
The DOJ separately tried to block UnitedHealth Group’s 2022 acquisition of Change Healthcare, claiming the health tech company’s acquisition could violate antitrust laws, though a judge ultimately disagreed.
