Ever since the shocking events in Midtown Manhattan, people haven't stopped talking about Brian Thompson. Usually, when a CEO makes headlines, it’s about a merger or a quarterly earnings call. This was different. A lot of the chatter online immediately shifted to a specific, heavy-hitting accusation: Brian Thompson insider trader.
It’s a complicated mess.
You’ve probably seen the social media posts. People were sharing images of those now-infamous shell casings with "Deny, Defend, Depose" etched into them. But behind the sensationalism of the December 4, 2024, shooting, there is a very real, very dry legal document filed months earlier that started the whole "insider trader" firestorm.
The $15 Million Question
Basically, in May 2024, a lawsuit landed in a Minnesota federal court. It wasn't from a disgruntled patient or a doctor. It came from the City of Hollywood Firefighters' Pension Fund.
They weren't happy.
The pension fund alleged that Brian Thompson and other top UnitedHealth Group (UHG) execs dumped a massive amount of stock right before some very bad news went public. Specifically, the lawsuit claims Thompson sold about $15.1 million worth of his shares.
Now, $15 million is a lot of money to you and me. To a guy running the insurance arm of a company that brings in hundreds of billions? It’s still a lot. But the timing is what really makes people squint.
The pension fund argues that Thompson and others, like UHG Chairman Stephen Hemsley (who sold a staggering $102 million), knew the Department of Justice (DOJ) was breathing down their necks. They allegedly knew about a non-public antitrust investigation months before the rest of the world found out through a Wall Street Journal report in February 2024.
How the "Insider Trader" Label Stuck
To understand why people are calling Brian Thompson an insider trader, you have to look at the timeline the lawyers laid out. Honestly, it looks tight.
✨ Don't miss: Rough Tax Return Calculator: How to Estimate Your Refund Without Losing Your Mind
- October 2023: According to the lawsuit, UnitedHealth reportedly finds out the DOJ has reopened its antitrust probe into the relationship between UnitedHealthcare and Optum.
- The Gap: Between October and February, the public knows nothing. The stock is riding high.
- The Sales: This is when the selling happens. Thompson and Hemsley offload millions.
- February 27, 2024: The Wall Street Journal drops the bomb. The DOJ is investigating.
- The Crash: UnitedHealth stock value plummets. We’re talking about $25 billion in shareholder value vanishing in a heartbeat.
The logic of the lawsuit is simple: if you know the ship is about to hit an iceberg and you sell your tickets to unsuspecting passengers before the impact, you've crossed a line.
But here’s the thing. High-level executives sell stock all the time. It’s part of their compensation. Usually, they use something called a Rule 10b5-1 trading plan. These are pre-scheduled sales meant to protect execs from exactly these kinds of "insider trader" accusations.
The problem? The firefighters' lawsuit claims there was "no indication" these specific trades were made under those protected plans.
What Most People Get Wrong
It's easy to look at a $15 million sale and scream "guilty." But the legal reality is much more gray.
First off, being named in a civil lawsuit is not the same as being charged with a crime. Brian Thompson was never indicted for insider trading. There were no handcuffs. No SEC settlement with his name on it before his death.
Even Senator Elizabeth Warren got involved, writing a spicy letter to the SEC. She wanted a full-blown investigation. She pointed out that UHG had been buying up every link in the healthcare chain, from the doctors to the data processors. When you own the whole game, the DOJ tends to get interested.
UnitedHealth, for its part, has always pushed back. They’ve called some of the reporting on the criminal probe "deeply irresponsible." They claim they have firewalls in place. They say they cooperate with regulators.
But the "insider trader" label isn't just about the law. It’s about the optics. When people are struggling to get their Ozempic covered or fighting a "prior authorization" denial, seeing a CEO walk away with $15 million just before a stock dip feels... well, it feels gross to a lot of people.
🔗 Read more: Replacement Walk In Cooler Doors: What Most People Get Wrong About Efficiency
The DOJ's "Stain" on the Legacy
The antitrust investigation wasn't just some small audit. It was looking at the very core of how UnitedHealth makes money.
The DOJ was worried that UHG’s Optum unit (which employs more doctors than anyone else) was getting special treatment from UHG’s insurance unit (UnitedHealthcare). If the insurance side is steering patients to the doctor side, and the data side is seeing what competitors are doing, that’s a monopoly.
That’s what the DOJ wanted to know.
Before Thompson was killed, Fortune called these investigations a "stain" on his leadership. It wasn't just the stock sales; it was a Senate report showing a surge in Medicare Advantage denials. It was the massive Change Healthcare cyberattack that paralyzed the industry.
Everything was hitting at once.
Reality Check: Did He Do It?
We might never get a definitive "yes" or "no" from a court of law now.
When a defendant dies, civil lawsuits often move into a different phase involving the estate. The legal battle with the Hollywood Firefighters' Pension Fund was actually pushed back recently. An order that was supposed to happen in December 2024 was delayed until March 1, 2025.
It’s important to remember that insider trading requires intent. You have to prove the person knew material, non-public information and traded specifically because of it.
💡 You might also like: Share Market Today Closed: Why the Benchmarks Slipped and What You Should Do Now
Was Brian Thompson an insider trader? Or was he just a guy executing options at a really, really unlucky time?
If the trades weren't on a 10b5-1 plan, it’s a much harder climb for his estate's lawyers. If they were on a plan set up a year in advance, the whole "insider trader" narrative falls apart.
Practical Takeaways and What to Watch
If you’re following this because you’re an investor or just someone interested in corporate ethics, there are a few things to keep an eye on.
- The SEC Filings: Look for the 10-K and 10-Q reports from UnitedHealth Group. They are legally required to disclose "material" legal proceedings.
- The 10b5-1 Evidence: If UnitedHealth eventually proves these sales were pre-planned, that's a huge win for Thompson's legacy.
- The DOJ Antitrust Case: This is bigger than one man. If the DOJ forces a breakup of UnitedHealth or Optum, it changes the entire American healthcare landscape.
The Brian Thompson story is a tragedy in every sense—a man lost his life, a family lost a father, and a company lost its leader. But it’s also a massive case study in corporate transparency.
Don't just believe the headlines. The truth about whether someone is an "insider trader" usually lives in the fine print of a SEC filing, not a viral post.
For those looking to protect their own investments, always check if an executive's stock sales are "planned" (marked as 10b5-1) or "discretionary." It’s the difference between a routine financial move and a potential legal nightmare.
Stay skeptical. Read the source documents. And remember that in the world of high-finance, timing is everything—and sometimes, timing is the smoking gun.