UnitedHealthcare CEO Brian Thompson was facing a lawsuit accusing him and other executives of insider trading related to an ongoing Justice Department investigation before he was fatally shot outside a New York City hotel on Wednesday.
Thompson, 50, was one of three UnitedHealth Group executives named in a class action lawsuit filed in May that accused them of dumping millions of dollars worth of stock while the company was the subject of a federal antitrust investigation, which investors say wasn’t immediately disclosed to shareholders.
“UnitedHealth was aware of the DOJ investigation since at least October 2023. Instead of disclosing this material investigation to investors or the public, UnitedHealth insiders sold more than $120 million of their personally held UnitedHealth shares,” the suit filed by the City of Hollywood Firefighters’ Pension Fund alleges.
This undated photo provided by UnitedHealth Group shows UnitedHealthcare chief executive officer Brian Thompson. 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 off more than $15 million of his own UnitedHealth shares before the value dropped, however, the suit states.
It was the first time that Thompson had sold shares since becoming CEO of the company’s insurance division in 2021, Crain’s New York Business reported back in April.
Attorneys listed as representing Thompson in the suit did not immediately respond to HuffPost’s request for comment Thursday.
Police have not identified a suspect or possible motive in the shooting as of Thursday morning. The assassin was able to take off on a bicycle, though they reportedly left shell casings at the scene with the words “deny,” “defend” and “depose” on them, law enforcement sources told ABC and NBC News.
These words resemble a three-word tactic that 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 that is said to expose insurance injustice and explain how consumers and lawmakers can fight back.
Brian Thompson, 50, was shot outside the New York Hilton early Wednesday morning. The chief executive of one of the United States’s largest health insurance companies was killed in a suspected targeted attack, police have said. BRYAN R. SMITH via Getty Images
Thompson’s wife, Paulette, told NBC News on Wednesday that her husband had been the subject of threats related to a lack of medical coverage.
“I don’t know details. I just know that he said there were some people that had been threatening him,” she told the outlet.
Despite the threats, she said, her husband didn’t change his travel routine.
The couple share two sons and had been living 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 investors conference.
The DOJ’s investigation has focused on potential conflicts between the company’s insurance unit and its Optum health services arm, including favoritism toward the physician groups acquired by Optum and challenges imposed on rivaling health insurers, as The Wall Street Journal reported.
The suspect sought in the killing of UnitedHealthcare CEO Brian Thompson is seen Wednesday morning in New York. via Associated Press
UnitedHealth Group has faced ongoing scrutiny from the DOJ over concerns about monopolization in the health care market.
Last month, the DOJ sued to block UnitedHealth Group’s purchase of the rivaling home health and hospice company Amedisys, alleging that the merger would reduce competition and the number of health and hospice services in the U.S.
UnitedHealth Group accused the DOJ of “overreacting” and vowed to fight its lawsuit.
The DOJ separately tried to stop UnitedHealth Group’s acquisition of Change Healthcare in 2022, alleging that the acquisition of the health-technology firm would potentially violate antitrust laws, though a judge ultimately disagreed.
