On September 30, 2026, US District Judge Jeffrey Bryan ruled that UnitedHealth Group Inc. must face a slimmed-down shareholder lawsuit filed by CalPERS. The lawsuit alleges UnitedHealth manipulated transactions to boost its 2024 earnings by $3.3 billion to hide Medicare Advantage weaknesses. While Judge Bryan dismissed claims based on promotional 'puffery,' he allowed allegations regarding the earnings boost and home-visit diagnosis inflation to proceed.
Ruling on motion to dismiss
- ▪US District Judge Jeffrey Bryan ruled on September 30, 2026, that UnitedHealth Group Inc. must face a slimmed-down shareholder lawsuit filed by CalPERS, dismissing most California Public Employees’ Retirement System (CalPERS) allegations that leaders deceived investors
- ▪UnitedHealth Group Inc. made a motion to dismiss the lawsuit filed by the California Public Employees’ Retirement System (CalPERS)
Alleged manipulation of earnings
- ▪A lawsuit filed by the California Public Employees’ Retirement System (CalPERS) alleges that UnitedHealth Group Inc. manipulated financial transactions to add $3.3 billion to its 2024 earnings to conceal weakness in its Medicare Advantage business
- ▪US District Judge Jeffrey Bryan ruled that the California Public Employees’ Retirement System (CalPERS) adequately pleaded its case regarding the alleged $3.3 billion earnings boost from 2024 deals, allowing that portion of the CalPERS lawsuit to proceed
Alleged inflation of patient sickness
- ▪A lawsuit filed by the California Public Employees’ Retirement System (CalPERS) alleges that UnitedHealth Group Inc. concealed an illegal practice of making its Medicare Advantage patients appear sicker on paper to siphon more money from the government
- ▪A lawsuit filed by the California Public Employees’ Retirement System (CalPERS) alleges that UnitedHealth Group Inc. pressured its doctors to add diagnoses to patients' records using bonuses
Allegations regarding home visits
- ▪A lawsuit filed by the California Public Employees’ Retirement System (CalPERS) cited statements by UnitedHealth Group Inc. claiming that home visits kept members healthy and that clinicians made independent clinical decisions
- ▪A lawsuit filed by the California Public Employees’ Retirement System (CalPERS) alleges that UnitedHealth Group Inc. used home visits to add diagnoses to patients' records for which they received no follow-up care
Debatable claims
- ▪Litigation by public pension funds is an effective way to police corporate governance
- ▪Healthcare companies should not offer doctors bonuses for adding patient diagnoses
- ▪Corporate promotional 'puffery' is a legitimate defense against shareholder lawsuits
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