CEO of UnitedHealthcare Brian Thompson was facing a lawsuit accusing him and other executives of insider trading related to an ongoing Justice Department investigation before he was shot dead outside a New York hotel on Wednesday.
Thompson, 50, was one of three UnitedHealth Group executives named in a class action filed in May that accused them of selling millions of dollars' worth of stock while the company was under federal antitrust investigation, which investors say was not immediately disclosed to shareholders.
“UnitedHealth has known about the DOJ investigation since at least October 2023. Instead of disclosing this important investigation to investors or the public, UnitedHealth insiders sold more than $120 million of their personally held UnitedHealth stock” , we can read in the complaint filed by the firefighters of the city of Hollywood. ” The Pension Fund says.
This undated photo provided by UnitedHealth Group shows Brian Thompson, CEO of UnitedHealthcare. UnitedHealth Group via AP
Nearly $25 billion in shareholder value was erased once the investigation was publicly revealed in February. Thompson was able to sell more than $15 million of his own UnitedHealth stock before the value dropped, however, the suit says.
It was the first time Thompson sold shares since becoming CEO of the company's insurance division in 2021, Crain's Business in New York reported in April.
Attorneys named as representing Thompson in the lawsuit did not immediately respond to HuffPost's request for comment Thursday.
Police have not identified a suspect or possible motive in the shooting Thursday morning. The assassin was able to flee on a bicycle, but he allegedly left shell casings at the scene with the words “deny”, “defend” and “depose” on them, police sources said. ABC and NBC News.
These words sound like a tactic in three words which insurance companies are commonly accused of using to deny insurance services and payments. The phrase “Delay, Deny, Defend” is also the title of a 2010 book purporting to expose injustice in insurance and explain how consumers and lawmakers can fight back.
Brian Thompson, 50, was shot dead outside the New York Hilton early Wednesday morning. The chief executive of one of the largest U.S. health insurance companies was killed in a suspected targeted attack, police said. BRYAN R. SMITH via Getty Images
Thompson's wife, Paulette, told NBC News On Wednesday, her husband was the subject of threats linked to the lack of medical coverage.
“I don’t know the details. I just know he said some people were threatening him,” she told the outlet.
Despite the threats, she said, her husband has not changed his travel habits.
The couple share two sons and have lived separately in Minneapolis for several years. The Wall Street Journal reported, citing property records, voter registration data and neighbors. Thompson was in New York ahead of an annual investor conference.
The DOJ investigation focused on potential conflicts between the company's insurance unit and its health services arm Optum, including favoritism toward physician groups acquired by Optum and challenges imposed on insurers health competitors, such as The Wall Street Journal reported.
The suspect wanted in the murder of UnitedHealthcare CEO Brian Thompson is seen Wednesday morning in New York. via Associated Press
UnitedHealth Group is facing increased scrutiny from the DOJ over concerns about monopolization of the health care market.
Last month, the The DOJ continued to block UnitedHealth Group's purchase of competing home health and hospice company Amedisys, alleging the merger would reduce competition and the number of health and hospice services in the United States
UnitedHealth Group accused the DOJ of “overreacting” and sworn to fight his trial.
The DOJ tried separately to block UnitedHealth Group's acquisition of Change Healthcare in 2022, alleging that the healthcare technology company's acquisition would potentially violate antitrust laws, although a judge ultimately disagreed.
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