UnitedHealth CEO Brian Thompson Facing DOJ Probe for Insider Trading
UnitedHealthcare CEO Brian Thompson was tragically killed in a targeted shooting outside a Manhattan hotel while under investigation by the Department of Justice. The investigation focused on allegations of insider trading related to stock options and share sales before news of a federal antitrust probe became public.
Thompson exercised stock options and sold shares amounting to $15.1 million just days before the antitrust probe news broke. This led to a sharp drop in the company’s stock price as the DOJ looked into whether UnitedHealthcare had engaged in anticompetitive practices through acquisitions that violated antitrust laws.
Alongside Thompson, other senior UnitedHealth Group executives, including chairman Stephen Helmsley, Chief People Officer Erin McSweeney, and Chief Accounting Officer Tom Roos, collectively sold $101.5 million in shares. The sales, particularly scrutinized when made by company principals, are typically reviewed by the general counsel to ensure proper disclosures are made to the market.
Earlier this year, UnitedHealth experienced a significant healthcare data breach, resulting in the compromise of private data for potentially one-third of Americans, including Social Security numbers, through a ransomware attack. The company paid a $22 million ransom to the hackers, with estimated financial costs reaching approximately $705 million.
The loss of Brian Thompson, a respected industry leader, shines a light on the complex issues facing UnitedHealthcare and underscores the impact of stock sales and investigations on company operations and the broader market.
