Investors sue UnitedHealth directors: 4 things to know

Central Laborers Pension Fund and a set of investment funds managed by Amalgamated Bank LongView sued UnitedHealth Group's directors and former CEO in Delaware Chancery Court, according to Law360.

Four things to know:

1. The derivative action, filed April 24, alleges 15 current or past UnitedHealth directors permitted the company to submit inflated risk adjustment claims to CMS for Medicare Advantage patients.

2. The lawsuit accuses the directors of breaching their corporate duty, according to Law360.

3. The lawsuit includes specific allegations against Stephen J. Hemsley, UnitedHealth Group executive chairman and former CEO. He "bore ultimate responsibility for overseeing and executing UHG's efforts to improperly increase revenues by defrauding Medicare," the lawsuit states, according to Law360.

4. The pension fund and bank-managed investment funds are seeking damages on behalf of UnitedHealth for the alleged billing violations. The damages include liabilities for practices dating back roughly 13 years to 2006.

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