UnitedHealth Group Under Investigation

UnitedHealth Group has disclosed that it is currently subject to both criminal and civil investigations by the Department of Justice (DOJ).

On Thursday, the company mentioned in a filing to the Securities and Exchange Commission (SEC) that it is responding to DOJ requests.

They added that they have “actively” engaged with the DOJ following media reports about an investigation focusing on Medicare practices.

“The company is now beginning to comply with formal criminal and civil requests from the department. UnitedHealth is fully confident in its practices and is committed to cooperating with the department throughout this process,” the company stated.

As a consequence of the announcement, UnitedHealth Group’s stock dropped about 2%. Executives are expected to face inquiries regarding the investigation during the second quarter revenue call scheduled for July 29th.

This news comes after the tragic shooting of CEO Brian Thompson in New York on December 4, 2024. Luigi Mangionne, 27, has been charged with Thompson’s murder, allegedly using a 9mm 3D printed ghost gun outside a hotel in midtown Manhattan, although he has pleaded not guilty.

Notably, the new CEO, Andrew, resigned unexpectedly in May of this year.

Earlier in May, the Wall Street Journal reported on the DOJ’s inquiry into major healthcare providers for possible Medicare fraud. In response, UnitedHealth commented on the importance of maintaining the integrity of the Medicare Advantage program.

By July, reports indicated that the DOJ had interviewed numerous doctors concerning UnitedHealth practices and that there were claims suggesting the need for the company to cover specific illnesses under the Medicare Advantage program.