Lawsuit Against Murdered CEO
Firefighters pension accused UnitedHealthcare CEO of fraud, insider trading
Before his fatal shooting outside a Midtown hotel this morning turned him into a spite-fueled internet meme, UnitedHealthcare CEO Brian Thompson was facing legal problems.
In May, the Hollywood Firefighters’ Pension Fund had filed a lawsuit against Thompson, alleging he had sold over $15 million of UnitedHealth stock despite being aware of an active Justice Department antitrust investigation into the health insurance company that he did not disclose to investors or the public.
Though UnitedHealth, the lawsuit alleges, was aware of the Justice Department investigation since at least October 2023, the public would only learn of the case when the Wall Street Journal published a story about it on February 27, 2024. When news of the investigation broke, it erased almost $25 billion in shareholder value. But by that time, Thompson had already cashed out, selling over $15 million in personally held UnitedHealth shares, per the suit.
If true, the account affirms the countless internet memes’ depiction of Thompson as a rapacious health insurance executive fat cat. Literally none of the news media coverage I’ve seen about the murder has included this context, instead tugging at heart strings about the two sons he’ll be leaving behind. Members of Congress have likewise issued anguished statements about the tragic loss of life, remarks that decline to mention the allegations against him or the vast sums of money the company he oversaw has contributed to them and other politicians.
That’s why I wrote this: to try to get this part of the story out there. If you appreciate reporting that provides the part of the story that’s maybe too uncomfortable for major outlets, please subscribe below.
I’ve attached a copy of the lawsuit below.
Insider trading appears to be legal if you’re rich enough or a member of congress. Unless you’re Martha Stewart.
What is particularly valuable about what you have written is that it highlights the failure of major media even to mention such an apparently significant contextual bit of information.
It would be interesting to see exchanges between the reporters who want to include this information and their editors, and to hear or read why the editors refused to publish or broadcast it.