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.
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.
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.
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.