Stocks UnitedHealth Group (UNH) -15.09%)) It fell on Thursday. The company’s shares plummeted 15% as of 11:33am ET, but lost 19.2% earlier that day. The collapse is as follows: S&P 500 0.1% Nasdaq Composite A decrease of 0.4%.
The troubled health insurance giant is facing a report of a Department of Justice (DOJ) investigation into possible Medicare fraud.
UnitedHealth is facing DOJ probes
Wall Street Journal Late Wednesday, DOJ’s healthcare fraud squad reported that it was conducting a criminal investigation into the company about possible Medicare fraud. The investigation has been underway since at least last summer, according to the report.
UnitedHealth clearly didn’t know that an investigation had begun, but claimed it was standing after the news broke. [its] Medicare Advantage Program. ”
The latest threats
UnitedHealth is already under investigation by the DOJ in a civil fraud case surrounding Medicare claims practices. Another research revelation comes days after CEO Andrew Whitty suddenly left the company for “personal reasons.”
Image source: Getty Images.
The company is also facing rising health costs, which pressures margins, forcing it to cut its full-year guidance in its previous quarterly profit report.
All of this has shaken investors’ trust in the healthcare giant, with its shares plunging 50% in just 23 trading days. Netflix According to Dow Jones market data, it fell 54% in May 2022.
There are too many problems facing UnitedHealth at this point, but this seems like once-stable investments are far apart at this point. I’m leaving the UnitedHealth stock.
Johnny Rice has no position in any of the stocks mentioned. Motley Fool has a position and recommends Netflix. Motley Fool recommends the UnitedHealth Group. Motley Fools have a disclosure policy.
