UnitedHealth shares plummet due to criminal probe, wiping out over $300 billion in market value.

From Yahoo Finance: 2025-05-15 06:18:00

UnitedHealth Group’s shares plummeted by nearly 13% after news broke of a criminal investigation by the U.S. Department of Justice for potential Medicare fraud, wiping out over $300 billion in market value since November. The stock hit a five-year low at $267, making it the worst-performing Dow component this year. Investors are wary of more turbulence ahead.

CEO Andrew Witty’s sudden exit and the withdrawal of its 2025 forecast led to an 18% drop in shares earlier this week. The company is facing a crisis as reports of the investigation add to ongoing setbacks. UnitedHealth has denied being informed of the DoJ probe, as it grapples with a civil fraud investigation reported earlier this year.

UnitedHealth’s dominance in the health insurance and Medicare market is under increased scrutiny, with the industry facing public and government pressure. The company, under new leadership with former CEO Stephen Hemsley, seeks to navigate these challenges and regain investor confidence amidst economic uncertainty. Analysts believe the company’s fundamentals remain strong, but rebuilding trust may take time.

Despite recent hardships, Oppenheimer analyst Michael Wiederhorn maintains that UnitedHealth’s core strengths are intact, expressing confidence in the company’s long-term prospects. The focus now shifts to how the healthcare giant will adapt and address the challenges ahead.



Read more at Yahoo Finance: UnitedHealth tumbles as criminal probe report adds to investor fears