UnitedHealth Board Accused of Ignoring Risks Before Billion-Dollar Investor Losses

UnitedHealth Group Inc. has been accused of ignoring governance and oversight risks for years leading up to catastrophic failures that resulted in billions of dollars in losses for investors, according to a shareholder lawsuit.

The amended complaint filed August 7 in a Minnesota federal court reveals new information from former insiders about how UnitedHealth handled cybersecurity after the acquisition of a company that would later suffer the largest US healthcare data breach on record.

According to the complaint, UnitedHealth board members ignored governance and oversight risks for years before the failures, which led to significant losses for investors. The lawsuit alleges that the company's handling of cybersecurity was particularly lax following the acquisition.