Fonds Des Missions v. Unitedhealth Group Incorporated

CourtDistrict Court, District of Columbia
DecidedApril 15, 2026
DocketCivil Action No. 2026-0970
StatusPublished

This text of Fonds Des Missions v. Unitedhealth Group Incorporated (Fonds Des Missions v. Unitedhealth Group Incorporated) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fonds Des Missions v. Unitedhealth Group Incorporated, (D.D.C. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

FONDS DES MISSIONS, : : Plaintiff, : Civil Action No.: 26-970 (RC) : v. : Re Document No.: 2 : UNITEDHEALTH GROUP INC., : : Defendant. :

MEMORANDUM OPINION

DENYING PLAINTIFF’S MOTION FOR A PRELIMINARY INJUNCTION; DENYING PLAINTIFF’S MOTION FOR A PERMANENT INJUNCTION

I. INTRODUCTION

Plaintiff Fonds des Missions (“Mission Fund”) is a Canadian charitable corporation and a

shareholder of Defendant UnitedHealth Group Inc. (“UnitedHealth Group” or “UHG”), a

national healthcare company. Late last year, Mission Fund submitted a proposal to UnitedHealth

Group for its Board of Directors to publish a report describing the healthcare consequences of

the company’s acquisitions over the last decade. Seeking to put this proposal to a shareholder

vote, Mission Fund requested that UnitedHealth Group include it in the proxy materials that the

company plans to circulate to other shareholders in advance of its annual shareholder meeting,

which will take place in June 2026. But UnitedHealth Group decided to omit the proposal from

its proxy materials, invoking a Securities and Exchange Commission rule that allows public

companies to exclude proposals that relate to a company’s ordinary business operations. More

than a month later, Mission Fund sued UnitedHealth Group and moved for a preliminary and

permanent injunction to compel it to include the proposal in the proxy materials.

For the reasons below, the Court denies Mission Fund’s motion for a preliminary

injunction. Based on the current record, Mission Fund has not made a clear showing that it is entitled to emergency injunctive relief. UnitedHealth Group further urges the Court to reach the

merits of Mission Fund’s claim and, on the existing record, dismiss the case with prejudice. But

at this preliminary juncture, the Court decides instead to dismiss Mission Fund’s motion for a

permanent injunction without prejudice.

II. BACKGROUND

A. Regulatory Background

1. Proxy Voting

“Public company governance, at its highest level, occurs through annual and special

shareholders meetings.” Institutional S’holder Servs. Inc. v. SEC, 718 F. Supp. 3d 7, 11 (D.D.C.

2024). At these meetings, “shareholders vote on a variety of issues, including selecting directors,

setting executive pay, and approving or rejecting major transactions, such as mergers and

acquisitions.” Id. Although shareholders can vote on such matters in person, they more

commonly do so by empowering other attending shareholders—known as “proxies”—to submit

votes on their behalf. Trinity Wall St. v. Wal-Mart Stores, Inc., 792 F.3d 323, 334 (3d Cir. 2015).

“As a typical corporation’s shareholders became increasingly numerous and widely distributed,

the proxy-voting system became ‘an indispensable part of corporate governance.’” As You Sow

v. Chubb Ltd., No. 26-cv-734, 2026 WL 879666, at *1 (D.D.C. Mar. 31, 2026) (quoting

Amalgamated Clothing & Textile Workers Union v. Wal-Mart Stores, Inc., 821 F. Supp. 877, 881

(S.D.N.Y. 1993)).

In advance of shareholder meetings, public companies that solicit proxies must publish

and distribute a “proxy statement” to all shareholders. Trinity Wall St., 792 F.3d at 334. The

proxy statement is an “informational package that tells shareholders ‘about items or initiatives on

which [they] are asked to vote.’” Id. (quoting Apache Corp. v. Chevedden, 696 F. Supp. 2d 723,

2 727 (S.D. Tex. 2010)). Along with the proxy statement, companies send shareholders a “proxy

card, on which the shareholder may submit his proxy.” Apache Corp., 696 F. Supp. 2d at 727.

Together, the proxy statement and proxy card are referred to as the “proxy materials.” KBR Inc.

v. Chevedden, 776 F. Supp. 2d 415, 419 (S.D. Tex. 2011).

2. Shareholder Proposals

Through the Securities Exchange Act of 1934, Congress delegated to the Securities and

Exchange Commission (“SEC”) “the task of regulating proxy solicitations and thereby regulating

one important avenue of management’s communication with shareholders.” Amalgamated

Clothing, 821 F. Supp. at 881. “The SEC’s proxy rules are concerned with assuring full

disclosure to investors of matters likely to be considered at shareholder meetings.” Trinity Wall

St., 792 F.3d at 335 (citation modified). To that end, the SEC adopted “Rule 14a-9, which

prohibits ‘false or misleading’ statements made in any proxy statement, form of proxy, notice of

meeting or other communication.” Amalgated Clothing, 821 F. Supp. at 882 (quoting 17 C.F.R.

§ 240.14a-9(a)). The SEC has interpreted this rule “to require companies to provide shareholders

with the opportunity to submit proposals to management for inclusion in the corporation’s proxy

material[s].” Id.

Another SEC rule, Rule 14a-8, furthers that objective by “afford[ing] shareholders access

to management proxy solicitations to sound out management views and to communicate with

other shareholders on matters of major import.” Id. (citation modified); see also 17 C.F.R.

§ 240.14a-8. “The idea was to provide shareholders a way to bring before their fellow

stockholders matters of shareholder concern that are proper subjects for shareholders’

action . . . and to have proxies with respect to such proposals solicited at little or no expense to

the security holder.” Trinity Wall St., 792 F.3d at 335 (citation modified). Under Rule 14a-8, a

3 shareholder who meets certain eligibility and procedural requirements—which are not in dispute

here—can force a company to “include [his] proposal in its proxy statement and identify the

proposal in its form of proxy” at the company’s expense. 17 C.F.R. § 240.14a-8.

Rule 14a-8 “does not create an open forum for shareholder communication,” however,

but “restricts the company[]subsidy to shareholders who offer ‘proper’ proposals.” Trinity Wall

St., 792 F.3d at 336 (citation modified). “A ‘proper’ proposal is one that doesn’t fit within one of

Rule 14a-8’s exclusionary grounds.” Id. In addition to the procedural grounds for exclusion

referenced above, Rule 14a-8 “lists thirteen substantive reasons why a company may exclude [a

shareholder’s] proposal” from its proxy materials. Heritage Found. v. Airbnb, Inc., No. 25-cv-

676, 2026 WL 395797, at *4 (D. Del. Feb. 12, 2026). Relevant here, Rule 14a-8(i)(7) allows a

company to exclude a proposal if it “deals with a matter relating to the company’s ordinary

business operations.” 17 C.F.R. § 240.14a-8(i)(7). “This exemption is premised on the notion

that ‘management cannot exercise its specialized talents effectively if corporate investors assert

the power to dictate the minutiae of daily business decisions.’” Grimes v. Centerior Energy

Corp., 909 F.2d 529, 532 (D.C. Cir. 1990) (quoting Med. Comm. for Human Rts. v. SEC, 432

F.2d 659, 679 (D.C. Cir.

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