https://www.levernews.com/wall-street-to-insurers-keep-denying-care/
UnitedHealth Group’s investors were profiting from its high denial rates. Now, they’re suing to ensure that doesn’t change.
A May 7 lawsuit brought by a small-time investor in UnitedHealth Group is one of the latest chapters in the battle, arguing that the company’s tanking stock performance this spring had cost its investors unfairly. Some corporate media reports framed the suit as investors taking on the company for its “aggressive, anti-consumer tactics.”
But in reality, court documents reveal, some of UnitedHealth Group’s investors are concerned that the company’s changing “corporate practices” have been too consumer-friendly. And they suggest that these practices are a driving force behind UnitedHealth Group’s disastrous first quarter of 2025, which saw cratering stock value and the departure of longtime CEO Andrew Witty.
UnitedHealth Group has one of the highest denial rates of any major insurer, which can force patients to forgo critical treatment, even under a doctor’s orders. The corporation was one of the first insurers to come under fire for using artificial intelligence tools to deny care.
Makes you proud to work in this industry, doesn’t it?