UnitedHealth Faces Shareholder Lawsuit Over Alleged Earnings Manipulation
UnitedHealth Group Inc. will face a shareholder lawsuit filed by CalPERS after a federal judge ruled that the pension fund adequately pleaded its case. The lawsuit alleges that UnitedHealth misled shareholders about financial transactions that boosted earnings in 2024, adding $3.3 billion to the company's profits.
The complaint argues that UnitedHealth made strategic omissions and misleading statements to investors regarding the reason for and nature of these transactions. U.S District Judge Jeffrey Bryan agreed with CalPERS, allowing the lawsuit to move forward on these claims.
In dismissing some of the allegations, Bryan wrote that CalPERS failed to show how 43 specific statements were false. However, he allowed the pension fund to proceed on five other statements related to the company's alleged misconduct.