Recently there is a news getting viral on various social media platforms and blogs that say BlackRock is suing UnitedHealth for “giving too much care” or affecting profitability. But if we look carefully at the facts, we can see that, this news isn’t true. Let’s break down what we do know and where the confusion appeared.
1. The lawsuit itself
Investors who invested in UnitedHealth stocks between December 3, 2024 and April 16, 2025 are suing the company in the U.S. District Court for the Southern District of New York.
As per the lawsuit the UnitedHealth made a false misleading statements and didn’t tell investors about some changes in the way they do business (especially their business strategy for refusing claims and making money), and then they lowered their earnings guidance, which is causing the investors to lose their money.
- The plaintiff is an individual (Roberto Faller) representing the class, not BlackRock.
- The lawsuit is against UnitedHealth and some of its representative, not BlackRock.
- The legal basis for the lawsuit is securities law (i.e., alleged fraud/misrepresentation) rather than a corporate suit by BlackRock against UnitedHealth.
2. Which role does BlackRock play?
BlackRock has major share in UnitedHealth. According to a source, reports that BlackRock holds around 8% of UnitedHealth’s shares.
But filing a lawsuit and owning shares are two different things. There is no reliable source that can prove BlackRock has taken any kind of legal action against UnitedHealth.
Some critiques on the internet even say:
“BlackRock has nothing to do with this lawsuit at all.”
In fact, even if BlackRock has majority of the share, there is no public record indicating it is the one who is suing UnitedHealth.
3. What’s causing the confusion?
There are a number of things that seem to have come together to make the news “BlackRock is suing UnitedHealth”:
- A lot of news and legal-alert portals talk about “investors,” which might mean “big institutional investors.”
- The lawsuit describes the changes in UnitedHealth’s business plan (such denying claims) and says that investors lost their money because of misleading information, which aligns with the idea that “profits fall because more care is given”.
- Online news portals and subreddits have spread the rumor or incorrect versions of the story, like “BlackRock is suing UnitedHealth for giving patients too much care.”
- Corporate ownership nuance: Just because someone owns a lot of shares that doesn’t indicate they are the plaintiff in a lawsuit.
4. What is the lawsuit really about?
Important parts of the case against UnitedHealth:
- UnitedHealth had already anticipated that its adjusted EPS for 2025 would be in a specific range (approximately $29.50 to $30).
- Later in April 2025, it reduced its guidance to about $26.00-$26.50 since more people were using its Medicare Advantage programs.
- The complaint says that UnitedHealth (and its officials) didn’t tell anyone that their corporate strategy for denying claims was changing, which meant the company would probably making less money. However, it still stood by its prior guidelines.
- It is said that the reduction in value that followed is going to hurt the investors who bought based on the earlier suggestions.
Conclusion:
So, to answer the rumor directly: No, BlackRock is not suing UnitedHealth (at least not based on any public filing that can be verified right now). Investors are suing UnitedHealth in court for what they say is a fake news and all those social media news are just clickbaiting.
BlackRock is still a major share holder, although it is not listed as a plaintiff. The fake news about “suing for giving too much care” seems to be a misleading news of the real issue, which is about disclosure, forecasting vs. actual results, and changes in strategy.
