A judge has dismissed a defamation lawsuit brought by UnitedHealth Group against The Guardian over an investigative article alleging the healthcare giant secretly paid nursing home employees bonuses to reduce hospital transfers of Medicare and Medicaid patients.
In a ruling issued Monday, the court granted motions to dismiss filed by both The Guardian’s U.S. operation, Guardian News & Media LLC, and its U.K. parent companies, Guardian News & Media Ltd. and Guardian Media Group Plc.
“This defamation action arises from an article … published online by news outlet, The Guardian,” the documents recap, summarizing the challenged reporting as alleging that UnitedHealth “has been secretly paying nursing home employees bonuses to reduce hospital transfers of United Medicare/Medicaid patients.”
UnitedHealth Group, United Healthcare Services and Optum had sued the news organization, alleging the article was defamatory and defamatory by implication.
The Guardian’s U.S. entity sought dismissal under Rule 12(b)(6), arguing the complaint failed to state a legally viable claim. The Guardian’s U.K. parent companies separately moved to dismiss for lack of personal jurisdiction under Rule 12(b)(2) or, alternatively, for failure to state a claim.
After reviewing the article, legal briefs and oral arguments, the court sided with the defendants. “For the following reasons, after reviewing the Article, the parties’ briefing, and oral argument, the Defendants’ Motions to Dismiss are GRANTED,” the opinion stated.
“We are delighted that Judge Scott has granted all of The Guardian’s motions to dismiss UnitedHealth’s lawsuit on the merits, a resounding victory for factual reporting and the First Amendment,” the outlet’s general counsel replied in a statement to TheWrap. “Even after UnitedHealth’s lawsuit was filed, the Guardian did not back down, continuing to publish new detail in our investigation. Today’s decision is a vindication of The Guardian’s deeply sourced, independent reporting, and a rejection of UnitedHealth’s bullying and intimidation tactics.”
The decision represents an early victory for The Guardian in a closely watched case involving investigative reporting into one of the nation’s largest healthcare companies. It was not immediately clear from the opinion whether the dismissal was with prejudice, which would prevent UnitedHealth from refiling its claims, or whether the company could amend its complaint or appeal the decision.
Representatives for UnitedHealth did not immediately respond to TheWrap’s request for comment.
