The largest public pension fund in the country, California Public Employees’ Retirement System (CalPERS), has filed an amended lawsuit against UnitedHealth Group, alleging that the company’s leaders have been concealing illegal activities to continue profiting from selling stock. The lawsuit, originally brought last May, was amended last week in the U.S. District Court of Minnesota, referencing STAT’s Health Care’s Colossus series and recent government investigations.
CalPERS, a shareholder of UnitedHealth, filed the class-action lawsuit on behalf of investors who purchased UnitedHealth stock between September 22, 2021, and February 20, 2025. The pension fund, with over 2 million members and assets exceeding $500 billion, accuses UnitedHealth of deceiving stockholders and violating federal securities laws by engaging in an illegal scheme to upcode Medicare Advantage patients without disclosing the associated risks. Instead of being transparent about these practices, the lawsuit claims that UnitedHealth’s leaders used earnings calls to highlight the company’s strong performance in Medicare Advantage, artificially inflating its stock value.
The lawsuit points to a pattern of behavior where UnitedHealth’s executives allegedly prioritized their financial gains over the interests of investors and the legality of their actions. The company, which generated more than $400 billion in revenue last year, is facing scrutiny for its alleged misconduct, including the manipulation of Medicare Advantage billing codes.
The amended complaint incorporates recent developments, such as a scathing government watchdog report and the revelation of a second Justice Department investigation into UnitedHealth. These new revelations add to the mounting evidence against the company and its leadership, painting a troubling picture of corporate misconduct and deception.
As the legal battle unfolds, investors and stakeholders in UnitedHealth will be closely watching the outcome of the lawsuit. The allegations of illegal behavior and financial misconduct could have far-reaching implications for the company and its reputation in the healthcare industry. Stay tuned for updates on this evolving story as more information comes to light.
