UnitedHealth Group (UNH) Shares Crater Again on WSJ Report of DOJ Criminal Investigation; Securities Class Action Pending - Hagens Berman

San Francisco, California--(Newsfile Corp. - May 20, 2025) - On May 15, 2025, investors in UnitedHealth Group (NYSE: UNH) saw the price of their shares crater as much as $59.13 (-19%) after The Wall Street Journal reported that the company is under criminal investigation for possible Medicare fraud. This latest development comes on the heels of the filing of a securities class action suit against UnitedHealth, and just one day after its CEO Andrew Witty stepped down and the company pulled its 2025 guidance which the company issued less than one month ago.

Hagens Berman is investigating the securities fraud claims alleged in the pending suit and urges UnitedHealth investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

Class Period: Dec. 3, 2024 - Apr. 16, 2025
Lead Plaintiff Deadline: July 7, 2025
Visit: www.hbsslaw.com/investor-fraud/unh
Contact the Firm Now: [e-mail]
844-916-0895

The Wall Street Journal "UnitedHealth Group Is Under Criminal Investigation for Possible Medicare Fraud":

On May 14, 2025 the WSJ reported that, according to people familiar with the matter, the Justice Department is investigating UnitedHealth Group for possible criminal Medicare fraud and that the investigation has been active since at least last summer. The report noted that, "[w]hile the exact nature of the potential criminal allegations against UnitedHealth is unclear, the people said the federal investigation is focusing on the company's Medicare Advantage business practices."

News of the criminal investigation comes just one day after UnitedHealth announced that it was retracting its already revised April 17 guidance and that the company's CEO Andrew Witty was being replaced by Stephen Hemsley, the current chairman and former CEO of UnitedHealth.

The Pending UnitedHealth Group Inc. (UNH) Securities Class Action:

Adding to its woes, UnitedHealth Group Inc. is facing a securities class action lawsuit in the Southern District of New York. The action, Faller v. UnitedHealth Group Inc., et al., No. 1:25-cv-03799, centers on the health care giant's financial outlook for fiscal year 2025.

The lawsuit alleges that UnitedHealth misled investors regarding its earnings projections. Initially, on December 3, 2024, the company projected net earnings per share (EPS) of $28.15 to $28.65 and adjusted EPS of $29.50 to $30.00. This guidance was reaffirmed on January 16, 2025. However, on April 17, 2025, the company sharply reduced its forecast to a net EPS of $24.65 to $25.15 and an adjusted EPS of $26.00 to $26.50, citing unexpectedly higher care utilization among its Medicare Advantage members. This revision triggered a roughly $170 billion decline in UnitedHealth's market value on the same day, with shares plummeting 22%.