UnitedHealth Slammed With Another Lawsuit Over $119 Billion Stock Plunge

UnitedHealth Group, Inc. (NYSE:UNH) is under renewed legal pressure as shareholders file additional lawsuits, many of which reference a federal investigation into the company's Medicare billing practices reported by the Wall Street Journal in May.

Details of the Latest Lawsuit

Steve Silverman, a UnitedHealth shareholder since 2003, filed a derivative lawsuit last week in federal court in Minnesota. In a derivative suit, a shareholder brings claims on behalf of the company against its own leadership, alleging harm to the corporation itself.

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Silverman's complaint accuses UnitedHealth's leadership, including CEO Stephen Hemsley, former CEO Andrew Witty and several board members, of:

Breaching their fiduciary duties

Engaging in insider trading

Unjust enrichment

Violating the Securities Exchange Act of 1934

The lawsuit references multiple media reports about UnitedHealth's billing practices, which culminated in the Wall Street Journal article that revealed the Department of Justice was preparing a criminal probe into the insurer's Medicare operations. 

"Despite repeated warnings, UnitedHealth's ...