UnitedHealth Group's stock takes another hit after DOJ investigation report

Lawsuit says UnitedHealth Group misled stockholders

Stockholders are suing UnitedHealth Group over allegations that the company misled them. FOX 9's Mike Manzoni has the full story.

MINNETONKA, Minn. (FOX 9) - After a report that the Department of Justice was investigating the company over potential Medicaid fraud, UnitedHealth Group saw its stock price take another hit.

UnitedHealth Group under investigation?

What we know:

The Wall Street Journal reported on Wednesday that the Department of Justice was investigating UnitedHealth Group's business practices related to Medicare Advantage.

What we don't know:

The newspaper said the investigation had been ongoing since last summer but said the "exact nature of the potential criminal allegations" was unclear. FOX 9 hasn't been able to independently confirm the Wall Street Journal's report.

What they're saying:

In a statement to FOX 9, UnitedHealth Group completely dismissed the Wall Street Journal's report:

"We have not been notified by the Department of Justice of the supposed criminal investigation reported, without official attribution, in the Wall Street Journal today.

"The WSJ’s reporting is deeply irresponsible, as even it admits that the 'exact nature of the potential criminal allegations is unclear.'

"We stand by the integrity of our Medicare Advantage program."

UnitedHealth Group stock takes a hit

Big picture view:

The bad press led to another stock price drop for the struggling healthcare giant.

Midday on Thursday, UnitedHealth Group's stock price had fallen more than 13%. Since a bad quarterly report, the company has seen its stock price fall by more than half, going from nearly $600 per share to $266 as of noon.

Timeline:

The recent report is just one of a number of hardships the company has faced in recent months.

• Dec. 4, 2024: UnitedHealthCare CEO Brian Thompson is shot and killed in an ambush attack.
• Feb. 25: Sen. Chuck Grassley launches an inquiry into UnitedHealth's Medicare billing. The inquiry followed a series of Wall Street Journal reports.
• April 17: UnitedHealth Group reports disappointing first-quarter results while slashing its 2025 earnings forecast. The company blamed an increase in care for Medicare Advantage patients. The report caused UnitedHealth Group's stock to tumble more than 20%.
• May 7: A stockholder files a lawsuit against the company claiming it "defrauded investors" by artificially inflating the stock price.
• May 13: UnitedHealth Group CEO Andrew Witty steps down for personal reasons amid the company's struggles on the stock market. The company also suspends its 2025 guidance.
• May 14: The Wall Street Journal reports a DOJ investigation into the company.

In the background, FOX 9 has reported extensively on FTC's review of pharmacy benefit managers (PBMs), including UnitedHealth's OptumRx. A report accused the PBMs of inflating drug prices, with some drugs being marked up by more than 1,000%.

Local perspective:

UnitedHealth Group is headquartered in Minnetonka, Minn. and is one of the largest employers in Minnesota.