The Pdmubo Wealth Management PDG and CIO Philip Palumbo discusses trends in the UNITEDHEALTH group market and more on “The Claman Countdown”.
The Unitedhealth Group actions fell by more than 15% in early morning trade after the Wall Street Journal reported that the United States Ministry of Justice was investigating the company for potential health insurance fraud.
The latest news is added to the litany of the misfortunes of the health insurer, including multiple government demands, a sudden change in high -level leadership and a perspective drawn in the face of the outbreak of medical costs.
Investors and analysts noted that if the details of the survey were limited, they have strengthened investors’ concerns.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Oneh | Unitedhealth Group inc. | 264.09 | -43.87 |
-14.25% |
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“The stock is already in the niche with investors, and additional uncertainty will only accumulate,” said James Harlow, Vice-President Director of Novare Capital Management, who has actions in United.
However, the company said that it had not been informed by the MJ about this criminal investigation.
The news of the survey follows the brutal departure of the CEO Andrew Witty and the withdrawal of his forecasts in 2025, which triggered a drop of 18% of shares to a lower over four years on Tuesday.
Andrew Witty, managing director of Unitedhealth Group Inc., arrives for an audience of the Senate finance committee in Washington, DC, on May 1, 2024. (Al Drago / Bloomberg via Getty Images / Getty Images)
“Unitedhealth Group is mired in an apparently endless crisis. Investors are preparing for another big turbulence fight, given reports from the DOJ investigation,” said Susannah Staughter, head of money and markets at Hargreaves Lansdown.
Unitedhealth Group aims to get back in business after the CEO’s murder
If the preheating losses are maintained, the UNITEDHEALTH market capitalization will reach $ 280 billion, that is to say almost half of the $ 530 billion recorded on April 16, a day before a surprise profit, Miss triggers a sale in shares.
The health insurance sector was subject to a meticulous examination after legal action this month accused three main American insurers of paying bribes to brokers to orient patients in their plans.
In February, the WSJ revealed an investigation into civil fraud on the medical medical practices of Unitedhealth, while the American senator Chuck Grassley launched an investigation into the company invoicing methods, demanding detailed compliance files.
Senator Chuck Grassley (R-IA) is expressed with journalists before a vote in the American Capitol building before a Senate lunch on October 19, 2021 in Washington, DC. (Anna Moneymaker / Getty Images / Getty Images)
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For decades, the company prospered by taking advantage of its domination in insurance and growth of the Medicare market, the American government program which covers medical costs for the elderly.
This solid performance sequence suffered pressures just months after a senior manager was tragically killed, allegedly by a rabid man for insurer practices.
