Shares of UnitedHealth Group dropped over 18% following reports that the Department of Justice is conducting a criminal investigation into possible Medicare fraud within the company. The DOJ’s focus is on UnitedHealth’s Medicare Advantage business practices, though the exact nature of the allegations remains unclear. In response, UnitedHealth Group stated that it has not been officially notified of any probe and criticized the reporting as ‘deeply irresponsible.’ This marks the second federal scrutiny this year for the insurer’s Medicare Advantage segment, with a prior civil investigation into inflated diagnoses for additional Medicare payments. Additionally, the company recently experienced leadership changes, with CEO Andrew Witty stepping down. UnitedHealth Group’s market value has significantly declined this year, losing over $300 billion of its $600 billion market cap in just one month. Concerns persist about its potential removal from the Dow Jones Industrial Average unless consistency improves. — new from CNBC
