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UnitedHealth Group Sues Ex-Executives Over Alleged Corporate Espionage

UnitedHealth Group files a lawsuit against former executives Ken Ehlert and Mark Pollman, accusing them of stealing confidential information to establish a competing health care company, Lore Health.

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Hadeel Hashem
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UnitedHealth Group Sues Ex-Executives Over Alleged Corporate Espionage

In a twist of corporate intrigue, health care entrepreneurs from Minnesota, Ken Ehlert and Mark Pollman, find themselves locked in a legal duel with their former employer, UnitedHealth Group. The dispute traces its origins back to 2017, when Ehlert and Pollman sold their innovative research and development firm, Savvysherpa, to UnitedHealth for a tidy sum of $46.8 million. The acquisition not only catapulted them into executive roles at UnitedHealth but also led to the birth of a groundbreaking diabetes management tool, Level2.

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The Souring of a Partnership

However, what began as a promising alliance rapidly disintegrated, culminating in Ehlert and Pollman's termination and a subsequent lawsuit against UnitedHealth. The bone of contention was the alleged reneging by UnitedHealth on due compensation tied to the triumph of Level2. Ehlert and Pollman contended that Level2's valuation hovered between $1.5 billion and $2 billion, a claim UnitedHealth dismissed, stating that any further remuneration was subject to a separate deal that never saw the light of day.

From Arbitration to Accusation

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Following a breach-of-contract case that was referred to arbitration and subsequently closed, the tables have turned with UnitedHealth now suing Ehlert and Pollman. The health care behemoth accuses its former executives of launching a rival company, Lore Health, fueled by confidential data gleaned from UnitedHealth. The lawsuit alleges that Pollman managed to secure a hard drive crammed with sensitive files during an informal lunch rendezvous with a former subordinate.

Unraveling the Lore Health Mystery

UnitedHealth further claims that Lore Health is the brainchild of Ehlert and Pollman, functioning from Minnesota, despite attempts to mask their involvement and the listing of a San Diego headquarters on the company's website. The lawsuit states that the former executives amassed 500,000 emails and files, brimming with confidential information and trade secrets, and leveraged them to conceive a suite of corporate entities. UnitedHealth is now seeking recompense from Lore Health and a court injunction prohibiting the company from divulging any more confidential information.

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