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UnitedHealth shareholder suit alleges governance and audit failures
The amended complaint filed in Minnesota federal court alleges the insurer shut down an internal audit program that flagged Medicare billing problems and mishandled cybersecurity risks after an acquisition.
A shareholder amended complaint filed Aug. 7 in Minnesota federal court alleges UnitedHealth Group board members ignored governance and oversight risks for years, and that those lapses contributed to catastrophic failures that triggered billions in losses for investors, according to Insurance Journal.
The filing includes allegations tied to UnitedHealth handling of cybersecurity following an acquisition that later became the source of what the suit describes as the largest US healthcare data breach on record. It also alleges UnitedHealth shut down an internal audit program that had shown problems in its Medicare billing.
The lawsuit further points to prior whistleblower and watchdog allegations that UnitedHealth inflated Medicare payments, and it notes the US Department of Justice has opened criminal and civil investigations into the company’s Medicare practices. A UnitedHealth representative declined to comment, and defense attorneys did not respond to a request for comment, the outlet reported.
UnitedHealth is fending off multiple shareholder lawsuits after its stock price fell sharply from a 2024 record high, the complaint says. The amended case includes shareholders such as Rhode Island’s public employee retirement system and Länsförsäkringar Fondförvaltning AB, which the complaint says owns more than $123 million in UnitedHealth stock, and it seeks to hold directors and officers responsible for allegedly missing red flags.