Federal prosecutors and lawyers for Luigi Mangione, the man accused of killing UnitedHealthcare CEO Brian Thompson, engaged in plea deal discussions ahead of a recent court appearance, according to a report.

Sources stated that although an agreement appeared close earlier this week, the talks have since collapsed, according to a report by NBC News.

The development follows recent shifts in Mangione’s state-level defense strategy. Earlier this month, defense attorneys indicated they might pursue a psychiatric defense, but later withdrew their notice to argue that the 28-year-old suffered from “extreme emotional disturbance” at the time of the shooting.

Mangione has pleaded not guilty to all state and federal charges connected to the December 4, 2024, shooting of Brian Thomas, a 50-year-old healthcare executive, outside a midtown Manhattan hotel.

Thompson, who had been with UnitedHealth Group for two decades and became CEO of its insurance division in 2021, was shot while walking to an investor conference. Surveillance footage captured a masked gunman carrying out the attack, and investigators later stated the ammunition used was inscribed with the words “delay,” “deny,” and “depose” — a critique of insurance industry practices.

Legal experts said that pretrial plea negotiations are standard in major criminal cases.

NBC legal analyst Danny Cevallos told the outlet that a federal plea agreement could potentially prevent New York state from pursuing its own prosecution for the same conduct under state law.

Mangione’s defense attorney, Karen Friedman Agnifilo, criticized the leak of the discussions.

In a statement to NBC New York, Agnifilo said the information attributed to anonymous sources represented a deliberate effort by law enforcement and prosecutors to prejudice her client, influence public opinion and violate his right to a fair trial.

“Every defendant in America is presumed innocent until proven guilty, including Luigi, who has to fight the same charges twice,” she said.

The high-profile killing sparked intense national debate over the U.S. health insurance system, with public reaction to Mangione split between condemnation of the violence and shared anger over corporate insurance policies. He fled after the shooting and sparked a massive manhunt across the nation.

Mangione, an Ivy League graduate from an affluent Maryland family, was arrested on December 9, 2024, at a McDonald’s in Altoona, Pennsylvania, five days after the shooting.

Both sides have spent months preparing for trials. The state trial was tentatively set for September, followed by a federal trial to begin on October 13. Mangione faces a maximum sentence of life in prison if convicted in either court.

The case against him includes key physical evidence. During a May 18 hearing, New York Judge Gregory Carro ruled that prosecutors could introduce a notebook and a 3D-printed pistol recovered during Mangione’s arrest. Prosecutors stated the weapon matched the gun used in the homicide, and the notebook explicitly detailed a desire to target a health insurance executive and rebel against the industry.