UnitedHealth Group Slams “Deeply Irresponsible” WSJ Report As Shares Suffer Worst Weekly Crash Since 1998

Update (1032ET):

UnitedHealth Group shares plunged in early U.S. cash trading after The Wall Street Journal reported Wednesday evening that the Department of Justice is conducting an ongoing criminal investigation into the company’s Medicare practices.

UnitedHealth Group rejected WSJ’s claims, saying: 

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.

Shares of UnitedHealth are down 17% on the session. Since mid-April, shares have crashed 58% on a series of negative news, including earlier this week:

• UnitedHealth Group Shares Plunge On Abrupt CEO Exit, Suspends 2025 Outlook

Shares are so far down 32% on the week, the worst weekly performance since the first week of August 1998.

This is comical: Bloomberg data shows that 82.8% of analysts covering UnitedHealth Group still rate the stock a “Buy,” with an average 12-month price target of $438. The current price is $254.

Such swift and steep drawdowns have speculators wondering whether a bottom is near—a tough call, but definitely one to keep a close eye on.

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And the hits just keep on coming…

UNH shares are plunging after hours (down 6% and back below $300 for the first time since September 2020) following a report from The Wall Street Journal that, according to people familiar with the matter, the DOJ is investigating UnitedHealth Group for possible criminal Medicare fraud related to its Medicare Advantage business.

While 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.

The Justice Department’s criminal healthcare fraud unit focuses on crimes such as kickbacks that trigger higher Medicare and Medicare payments.

UnitedHealth’s latest annual securities filing says the company “has been involved or is currently involved in various governmental investigations, audits and reviews,” and flags involved agencies including the Justice Department.

It doesn’t specifically mention the criminal, civil, and antitrust probes the Journal has reported.

The probe adds to a list of government inquiries into the company, including investigations of potential antitrust violations and a civil investigation of its Medicare billing practices, including at its doctors offices.

All of this comes as the Trump administration and Congress look to cut federal health spending, a key source of UnitedHealth’s success.