Suspected insider trading? Allegedly, UnitedHealth executives sold $102 million in stocks before the news of an antitrust investigation surfaced
According to reports, four months before the news of UnitedHealth Group's Chairman and three senior executives being under federal antitrust investigation, they sold $101.5 million worth of stock in the healthcare giant. These transactions took place between October 16th and February 26th last year, during which the stock price dropped by about 12%. The transaction executors include UnitedHealth Group's Chairman Stephen Hemsley and CEO Brian Thompson. It is not yet clear whether these trades were conducted according to a pre-established trading plan
According to the information obtained from the Zhitong Finance and Economics APP, it was reported that the Chairman of UnitedHealth (UNH.US) and three senior executives sold $101.5 million worth of stock in this healthcare giant in the four months before news of the federal antitrust investigation into the company emerged.
At the end of February this year, it was reported that the U.S. Department of Justice had launched an antitrust investigation into UnitedHealth's business practices, after which the company's stock experienced several days of selling pressure.
The transactions reportedly took place from October 16 last year, a week after the company was informed of the DOJ investigation, until February 26, the day before the media began reporting on the investigation.
Since then, UnitedHealth's stock price has dropped by about 12%, while the S&P 500 index has risen by about 1%. The transactions were said to have been carried out by UnitedHealth Chairman Stephen Hemsley and executives including the CEO of the company's insurance division, Brian Thompson, and Chief Accounting Officer Tom Roos.
Hemsley, the former CEO of UnitedHealth, exercised some stock options expiring in 2024, and after selling these stocks on October 17 and December 5 last year, he made a net profit of $84.9 million. The sale on October 17 was his largest transaction in recent years.
Similar transactions on February 16 and October 16 last year brought in $15.1 million and $1.09 million in income for Thompson and UnitedHealth's Chief Human Resources Officer Erin McSweeney, respectively. Meanwhile, Roos raised $450,000 by selling stocks in February.
It is currently unclear whether these transactions were conducted in accordance with pre-established trading plans. A company spokesperson stated, "These directors and executives followed our procedures and received approval from the company."