Investor interests versus patient interests

Marketplace Morning Report

American Public Media

News, Business

4.5 • 808 Ratings

🗓️ 8 May 2025

⏱️ 8 minutes

🔗️ Recording | iTunes | RSS

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Summary

UnitedHealthcare is facing a lawsuit claiming it defrauded shareholders — by denying fewer claims but not warning ahead of time that its profits would decline. The nation’s largest health insurer has been under heightened scrutiny following the killing of its then-CEO in New York late last year. And later: President Donald Trump is expected to announce a trade deal with Britain, and consumer advocate Ralph Nader reflects on the drawbacks of going cashless.

Transcript

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0:00.0	Attention, you early, birds. When you make a donation to marketplace during the first two days of our May fundraiser, it can make a huge impact. The Investors Challenge Fund has issued us a challenge if we raise $25,000 in the first two days of this fundraiser. We'll unlock another $25,000 from the Challenge Fund. We can't afford to fall short here. Please step up and show your support today. Give what you can at marketplace.org slash donate and thank you.
0:30.4	A new example from the healthcare industry that investor interests do not always align with the interests of patients.
0:39.8	I'm David Brancaccio at Los Angeles.
0:45.5	United Healthcare is facing a lawsuit claiming it defrauded shareholders by denying fewer claims,
0:50.6	but not warning ahead of time that its profits would decline. The nation's largest health insurer has been under heightened scrutiny following the murder of its then CEO ahead of an investor conference in New York late last year.
0:57.6	Marketplace's Nova Saffo has details.
1:00.4	The proposed class action lawsuit is for anyone who owned a share of United Health Group between December 3rd and April 16th.
1:08.0	Why those dates?
1:09.2	Well, December 3rd is when the company issued its first forecast for its financial performance in 2025,
1:15.7	expecting earnings per share of about $30.
1:18.4	A day later, its CEO Brian Thompson was shot and killed outside a hotel in New York City.
1:23.7	April 16th is the day before the company updated its forecast, trimming earnings expectations
1:30.0	by about 10%, saying its costs were higher than it had previously expected.
1:35.1	The updated forecast caused United Health stock to plummet in value by the largest amount
1:40.2	in more than 25 years. The lawsuit says company leaders had the opportunity to warn investors
1:46.3	ahead of time that their profits would take a hit because United Health had allegedly shifted
1:52.3	strategies and was allowing more claims to go through, thus increasing its costs. The company has not
1:58.1	responded to the lawsuit and did not return a request for comment.
2:01.9	I'm Novassav for Marketplace.
2:03.2	President Trump has expected to announce a new U.S. trade deal with Britain sometime today.
2:08.4	The agreement would be the first country-to-country deal fleshed out since the president's big tariff rollout.
2:15.2	The BBC's Henry Zephman has that.
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