UnitedHealth Group Is Currently Facing Legal Challenges Related To Antitrust Allegations And Investigations

BySvetlana Minevich
Magnifying glass reading Health Law text

UnitedHealth Group is currently dealing with legal issues related to antitrust allegations and investigations. The United States Department of Justice (DOJ) has launched an antitrust investigation against UnitedHealth Group[1] a few months ago, which has led to the company abandoning its proposed acquisitions of Stewardship Health Inc. and a related company. [2]

Subsequently, a shareholder lawsuit has been filed against UnitedHealth Group and some of its executives. The lawsuit alleges that the company failed to disclose the DOJ antitrust investigation into UnitedHealth Group, which is focused on the relationships between its various business units, such as UnitedHealthcare and Optum, its health services division. The lawsuit claims that improper data sharing between these business units may have given UnitedHealth an unfair competitive advantage. This has resulted in a significant decline in UnitedHealth’s stock, leading to shareholders seeking damages. The lawsuit also claims that UnitedHealth Group misrepresented to investors its efforts to prevent anti-competitive behavior, leading to artificially inflated stock prices.[3] The news emerged when the Wall Street Journal reported the re-opening of the DOJ’s antitrust investigation into UnitedHealth,[4] which led to a significant decline in the stock price.  

Following a class action complaint filed against UnitedHealth Group a few months ago, stockholders are investigating potential claims against UnitedHealth Group on behalf of long-term stockholders. The investigation focuses on concerns about whether the board of directors of UnitedHealth Group has breached its fiduciary duties to the company.

[1] The DOJ is investigating the relationship between UnitedHealth and its Optum subsidiary. Optum has purchased numerous physician practices and now includes about 90,000 physicians and other healthcare providers, including surgery centers. 

[2] https://www.justice.gov/opa/pr/unitedhealth-group-abandons-two-acquisitions-following-antitrust-division-scrutiny.

[3] https://www.beckerspayer.com/payer/unitedhealth-group-officials-sued-over-justice-department-probe.html;
https://www.pymnts.com/cpi-posts/unitedhealth-faces-antitrust-lawsuit-over-alleged-misconduct-post-change-healthcare-acquisition/;
https://ca.finance.yahoo.com/news/us-launches-antitrust-investigation-unitedhealth-210442958.html;
https://www.investopedia.com/unitedhealth-group-stock-drops-following-report-of-antitrust-probe-8601598.     

[4] On January 6, 2021, UnitedHealth announced its agreement to acquire Change Healthcare and integrate it into Optum. However, on February 24, 2022, the DOJ filed a lawsuit challenging the acquisition, alleging potential antitrust violations due to the integration providing UnitedHealth with extensive access to health insurer information. Ultimately, the court in the DOJ action permitted the acquisition, repeatedly crediting UnitedHealth Group’s firewall policy and commitment to preventing data sharing between UnitedHealthcare and Optum as the rationale for allowing the deal to proceed.     

Similar Posts