UnitedHealth Group (UNH) Faces DOJ Investigation, Stock Price Plummets 9.13%
UnitedHealth Group (UNH) experienced a significant drop in stock price on Friday, losing over 8% in early trading. This decline was triggered by reports that the Department of Justice (DOJ) is investigating its Medicare Advantage insurance business.
The investigation examines how UnitedHealth records diagnoses that increase payments from the Centers for Medicare and Medicaid Services (CMS). This marks the sixth time the stock has declined this year, with additional headwinds facing the company in the past 12 months.
Last year, UnitedHealth was targeted by a cybersecurity attack affecting over 190 million individuals. The company is also facing scrutiny from the DOJ for a potential breakup, and the Federal Trade Commission (FTC) could potentially block their latest acquisition.
These challenges have impacted UnitedHealth's $460 billion market cap, marking a shift from its previous growth trajectory, when it was a contender to become the first trillion-dollar healthcare company.