“We don’t have one.”
Familiar with Luigi Mangione, defendant in the legal case US Department of Justice v. Luigi Mangiione? OK, imagine you’re in law school, and you’ve spent yesterday researching recent cases in industrial law, too, and you’ve spent yesterday researching recent cases in industrial law. You might have discovered the following cases:
US Department of Justice v. UnitedHealth Group,[1]
US DOJ v. Real Page,[2] and
US DOJ v. Agri Stats.[3]
Now, add US DOJ v. Luigi Mangione.[4] Why add this homicide case? Because each of these cases highlights how America’s important social-“supply chains” – health care, shelter, and food – are broken and were broken long before Covid-19.
Before United Health’s Brian Thompson was killed lamentably by, apparently, Luigi Mangione – spawning US DOJ v. Mangione – the US DOJ was investigating United Health for suspected antitrust violations. United had plans[5] to buy out its chief competitor, Change Healthcare.[6] On learning of the investigation, United officials including Brian Thompson cashed out much of their stock in the company while concealing the fact of the DOJ investigation. With that, the DOJ sued the United chiefs for illegal insider trading, saying,
“Concealing this material information from investors and the public…several senior executives (including Thompson) immediately took action – selling more than $100 million of their own UnitedHealth stock at artificially inflated prices as the market and other investors remained unaware of the new federal antitrust investigation.”[7]
Brian Thompson netted $15.1 million through his insider trades before the DOJ probe was publicized in April 2024.[8] United Healthcare received court permission to buy Change HealthCare, and that with that acquisition, United became overseer of more than half of America’s health claims.[9] Luigi Mangione almost certainly knew all this. He likely knew as well that in 2017, a kind of subsidiary[10] of United Healthcare, called ModivCare (previously Providence Services), was ruled to have unfairly denied Workers-Compensation claims,[11] and that later, ModivCare (nee Providence) falsely advised shareholders, for two years,[12] that stock prospects were good.[13] As well, Mangione almost certainly knew that United denied a greater share of claims than did other insurers.[14]
On December 4, 2024, the entire country soon knew that gunshots had killed Brian Thompson.
In February 2025, gunshots hit an Oregon house owned by the CEO of a Workers-Compensation insurance company.[15] In March 2025, the New Jersey home of a prominent Bayer executive was set on fire in an alleged arson.
Arguably all this harm could have been prevented by rigid enforcement of regulations that are on the books. However, the DOJ generally has avoided charging individual corporate-health executives in price-fixing cases[16] – instead gaining mostly money settlements, from companies that can afford this, as a type of business expense.
The problem exists with supplies for all crucial needs
Cutting supply is the simplest method to fix an artificially high price. Monopoly gives ability to cut supply significantly, but it is not necessary – instead, firms that are merely large can band together to cut supply. In 2003, members of the National Milk Producers Federation deliberately caused a milk shortage that raised prices. To do this, NMPF bought up cows – a half-million of them – and sent productive animals to slaughterhouses.[17] The next year, 2004, egg federations colluded with producers including Cal-Maine and Rose Acre Farms to fix prices by limiting egg production.[18] Recently, alongside an early-2022 bird-flu outbreak, egg price soared after Rose Acre and other producers killed off approximately 15 percent of the country’s egg-laying hens.[19] Currently, the DOJ is investigating whether producers killed healthy chickens as well as sick.[20] Producers, for their part, have implied they killed only enough birds to stop flu spread. There is no independent way to refute or confirm this.
Algorithms
Price fixers in the beef-supply chain didn’t need an industry association. Rather they relied on algorithm-pricing software, which software was brokered to cattle barons by the Agri-Stats company. In 2022 hamburger giant McDonald’s sued Agri-Stats – along with top beef suppliers that together controlled 80 percent of the industry.[21] The complaint said,
“For years, Agri Stats, Inc. has recruited the nation’s largest meat processors to exchange detailed information about their prices, costs, and production plans. Agri Stats operates its information exchanges to promote total-industry profits, at the expense of competition.”
At the time, Agri-Stats was defendant in around 90 other lawsuits alleging price-fixing.
Shelter
For apartments, software broker RealPage plays the same role as does Agri-Stats for food. Collusion to cut supply occurs when landlords follow RealPage algorithmic recommendations to hold vacant some of their rental units. For this, the DOJ is suing RealPage and some big landlords including Cortland, whose Atlanta offices the FBI raided in May 2024 gathering evidence for the current DOJ lawsuit versus RealPage.[22] Using RealPage, Cortland uses RealPage software called YieldStar in pricing the majority of apartnents in Atlanta, where since 2016 rents have grown by 80 percent.[23]
“Find out how our YieldStar (software) can help you outperform the market,” RealPage urges over the Internet.[24]
By 2022 RealPage client landlords were out-performing the market sharply using YieldStar;[25] some client landlords had raised rents by 14.5 percent,[26] RealPage execs told a ProPublica reporter in 2022. One said,
“Never before have we seen these numbers.”
Another said,
“I think it (YieldStar software) is driving it, quite honestly. As a property manager, very few of us would be willing to actually raise rents double digits by doing it ‘manually’” (i.e.,having a human do it).”
Another real-estate exec said,
“The beauty of YieldStar is that it pushes you to go places that you wouldn’t have gone if you weren’t using it.”[27]
Today
Algorithmic pricing prevails now over each crucial US supply chain – food, shelter, and health.[28]
This fact may be enough to tip regulators toward recognizing Heath-Shelter-Food all at once, as a single supply chain deserving of special consumer protection – special regulation for supply of “essentials.” Be reminded that energetic regulation could have mitigated public anger at inability to pay prices imposed for essentials.
Toward this shortcoming, in November 2024, Nevada Atty. Gen. Aaron Ford sponsored a bill[29] to prevent price-fixing of any essential good or service, saying,
“This bill reflects) several investigations and litigations my office has been active in during my time as Attorney General.”[30]
Concern with our Health-Shelter-Food supply chain appears to be growing among Americans – possibly growing rapidly – growing at this time when two American lives are over prematurely because of such concern. Brian Thompson is dead and Luigi Mangione has forfeited his life.
In conclusion, clearly America’s regulation of consumer-supply chains lags behind the intended prevention of harm. But a catch-up effort can be seen – especially in the scores of lawsuits, public and private, filed recently versus United Health, and versus RealPage, and versus Agri-Stats.
Are you, law student, living in one of the 10 American states so far that joined as co-plaintiffs in US v. RealPage? Or the District of Columbia, whose attorney general has sued both RealPage and 14 corporate-landlord algorithmic pricers, alleging they conspired to limit the supply of rental units? Or the several states so far whose legislatures have bills passed or pending against algorithmic pricing for any essential good or service? This is something to talk about.
Although the case US v. UnitedHealth Group is decided – in favor of United – the DOJ began a fresh investigation February 21, 2025 into United, this time for suspected improper Medicare-billing practices. And, law-school student, for status of DOJ suits still undecided involving RealPage, and Agri-Stats, see footnotes 2 and 3.
[1] FiledFebruary 24, 2022, Case No. 1:22-cv-0481 (CJN). Court found for United Health September 21, 2022.
[2] Filed August 23, 2024, Case No.1:24CVV7101. Jury trial demanded. Defendant has filed Motion to Dismiss, plaintiffs filed Response February 25, 2025.
[3] Filed September 28, 2023, Case No. CV 23-3009 (JRT/JFD). Court denied defendant motion to dismiss May 28, 2024
[4] Filed December 19, 2024, Case No. 24MAG4375. Hearing postponed to April 18, 2025 without explanation (from March 21, 2025). ABC News, March 18, 2025
[5] In the above-cited case versus United.
[6] Additionally, at the time of Brian Thomspon’s death, he was defending against a class-action suit alleging insider trading in United Stock. Cf. Hollywood Firefighters v. United Health Group, Andrew Witty, Steven Hemsley, and Brian Thompson, Case No. 0:24-cv-01743-DSD-ECW.
[7] Insurance NewsNet, December 5, 2024
[8] Crains New York, Apr 16, 2024. With the news finally leaking out, United share price dropped sharply and ordinary investors lost large sums. A class action lawsuit was filed in May 2024, naming Thompson and three other United executives as defendants
[9] Through Change’s “clearinghouse” technology (estimate by United Healthcare).
[10] The companies share a call-routing system. A United rep answers a ModivCare phone line. United uses the ModivCare company, to transport insured customers. A ModivCare Web page says
“How to Access Routine Transportation for UnitedHealthcare® Senior Care Options Members Routine Transportation is a benefit of UnitedHealthcare Senior Care Options. When members call to schedule a ride, they will be speaking with a ModivCare professional who will be able to assist them. To make a reservation, call 1 866 428 1967.”
[11] Smith v. Providence Health & Services – Oregon, 361 Or. 456, 393 P.3d 1106 (Or. 2017)
[12] Between November 2022 and September 2024.
[13]Prospects were bad in fact, because investigators had found ModivCare contractors billed Medicare for healthcare-transport trips that never happened and inflated mileage for trips they did complete. Cf. Jacksonville, Florida TV station News4Jax, whose results were broadcast November 22, 2022. And cf. HOLLYWOOD FIREFIGHTERS’ PENSION FUND, individually and on behalf of all others similarly situated, Plaintiff, v. UNITEDHEALTH GROUP INC., ANDREW WITTY, STEPHEN HEMSLEY, and BRIAN THOMPSON, UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA, filed May 14, 2024, defendants’ Motion to Dismiss filed February 28, 2025.
[14] Boston Globe, December 5, 2024
[15] The SAIF company (CEO ‘Chip’ Terhune); no one was injured. Cf. The Oregonian, February 27, 2025.
[16] They did charge one exec with anti-competitive wage-fixing – nursing-care provider Eduardo Lopez of Las Vegas. Cf. DOJ Archives, March 16, 2023.
[17] Consumer class-action lawsuit settled 2017.
[18] Associated Press, November 22, 2023. A judgment finding collusion came in 2023. The case is Kraft Foods Global Inc. et al. v. United Egg Producers Inc. et al., Case No. 1:11-cv-880.
[19] Some 2.8 million hens killed by Rose Acre alone. WISH TV, Indianapolis, January 28, 2025
[20] DOJ release, Mar. 6, 2025
[21] Including Tyson Foods, JBS, and Cargill; Investigate Midwest Web site, July 29, 2021.
[22] Cf. footnote 2. Cortland has entered a consent agreement with the DOJ resolving its part in the case.
[23] Uprise RI Web site, June 3, 2024
[24] 3 percent to 7 percent.
[25]Kortney Balas, director of revenue management at JVM Realty, referring to RealPage’s software in a testimonial on the company’s website.
[26] Facts and quotes concerning use of YieldStar cite ProPublica, October 15, 2022.
[27] Also under price-fixing scrutiny is Yardi Systems’ software “RENT Maximizer,” allegedly advertised as “a means of increasing rates above those available in a competitive market.” Duffy v. Yardi Sys., 2:23-cv-01391-RSL, 9 (W.D. Wash. Dec. 4, 2024). Prosecutors use a “hub and spokes” analogy – if defendants all deal with a central functionary (broker, e.g., RealPage or Yardi, the “hub”) and come out with the same price, it’s conspiracy even without any direct communication.
[28] UnitedHealth Group owns NaviHealth, whose tech allegedly under-predicts how much medical care a patient will need.
[29] Nevada Assembly Bill 44, heard in committee with no action on February 11, 2025. Nevada Current, February 11, 2025
[30] Ford said details of those investigations are not yet public