Latest news with #MedicareFraud
Bloomberg
16-05-2025
- Business
- Bloomberg
Stock Movers: UnitedHealth, First Solar, Super Micro
UnitedHealth Group Inc. (UNH) plummeted as much as 18% following a report that the insurer was under criminal investigation for possible Medicare fraud, adding to an already tumultuous week. The Justice Department has had a probe into the company's Medicare Advantage business since at least last summer, the Wall Street Journal reported, citing unidentified people familiar with the matter. UnitedHealth shares dropped every day for the last eight trading sessions, including sinking more than 17% Tuesday when the company abruptly replaced its chief executive officer and suspended 2025 guidance. It has lost more than $110 billion in market value this week. Legislation that House Republicans call "one big, beautiful bill" would extend Inflation Reduction Act Section 45X credits to 2031 and tweak section 45Z. First Solar shares have surged about 30% since the bill's introduction, as it alleviates fears that the IRA would be fully repealed as some Republican lawmakers had called for. Should the 45X provision that was included in IRA be reversed, First Solar's gross margin would drop to about 25% vs. about 44% in 2024, based analysis from Bloomberg Intelligence, with peers facing similar pullbacks. Super Micro Computer shares jumped after Saudi Arabia-based data center company DataVolt signed a multi-year partnership agreement with the beleaguered US server company. The stock has rallied more than 40% this week, notching the best week since November. The agreement should 'fast-track delivery of ultra-dense GPU platforms and rack systems for DataVolt's hyperscale AI campuses in the Kingdom of Saudi Arabia and the US,' the company said in a statement on Tuesday.
Globe and Mail
16-05-2025
- Business
- Globe and Mail
Why UnitedHealth Stock Is Crashing This Week
Shares of UnitedHealth Group (NYSE: UNH) are plummeting this week. The company's stock is down 27.4% as of 12:29 p.m. ET. The collapse comes as the S&P 500 (SNPINDEX: ^GSPC) gained 4.7% and the Nasdaq-100 gained 6.4%. It was reported this week that the troubled health insurance giant is facing a criminal investigation from the Department of Justice (DOJ). The report came just days after its CEO stepped down unexpectedly and the company pulled its full-year earnings guidance. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » UnitedHealth is facing another DOJ probe The Wall Street Journal reported late Wednesday that the DOJ's Health Care Fraud Unit is conducting a criminal investigation into the company for possible Medicare fraud. According to the report, the investigation has been ongoing since at least last summer. This isn't the first, however. The DOJ is already investigating the company's Medicare unit in a civil case. UnitedHealth's CEO abruptly exits as the company pulls guidance Earlier in the week, CEO Andrew Witty said he would step down for "personal reasons." On the same day, the company announced it was suspending its annual earnings forecast, citing rising medical costs. In a call for investors, chairman and now CEO Stephen Hemsley apologized: "I'm deeply disappointed in and apologize for the performance setbacks we have encountered from both external and internal challenges." The suspension follows an already lowered forecast and earnings miss revealed in April. All of this has shaken investor confidence in the healthcare giant, and its shares have plummeted 50% in just 23 trading days, marking the most severe drop for an S&P 100 company since Netflix fell 54% in May 2022, according to Dow Jones Market Data. There are just too many issues facing UnitedHealth at the moment, and this once seemingly stable investment looks far from it at the moment. I would stay away from UnitedHealth stock. Should you invest $1,000 in UnitedHealth Group right now? Before you buy stock in UnitedHealth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and UnitedHealth Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,385!* Now, it's worth noting Stock Advisor 's total average return is967% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 12, 2025
RNZ News
16-05-2025
- Business
- RNZ News
UnitedHealth: One of America's biggest companies is imploding
By Matt Egan , CNN UnitedHealth chief executive Andrew Witty testifies before the Senate Finance Committee on Capitol Hill on May 1, 2024 in Washington, DC. He has resigned abruptly from the business. Photo: AFP / Getty Images / Kent Nishimura UnitedHealth Group, one of the US's biggest corporations and a member of the exclusive Dow Jones Industrial Average, is suddenly unravelling. The crisis engulfing UnitedHealth hit a crescendo this week when chief executive Andrew Witty stepped down abruptly for "personal reasons". UnitedHealth also swiftly abandoned its financial guidance, blaming skyrocketing medical costs. And then The Wall Street Journal dropped the hammer, revealing that UnitedHealth is under federal criminal investigation for possible Medicare fraud. The developments have stunned investors, triggering a dramatic loss of confidence. UnitedHealth's (UNH) stock has lost half its value - a staggering US$288 billion (NZ$490b) - in the span of a month. Its share price plunged on Thursday (US time) to its lowest level since April 2020, during the height of the pandemic. It's a spectacular reversal of fortunes for one of America's most powerful companies and the nation's largest health insurer. The trouble at UnitedHealth comes almost exactly six months after the killing of Brian Thompson, one of its top executives . The brazen shooting of Thompson, in Midtown Manhattan, captured international attention and surfaced deep public resentment toward the healthcare industry . The UnitedHealth selloff gathered steam on Thursday, with the Journal report of a federal criminal investigation driving UnitedHealth shares down another 13 percent, leaving them on track for their worst week since 1998, according to FactSet data. The DOJ's healthcare-fraud unit is overseeing an investigation into possible Medicare fraud at UnitedHealth, the Journal reported. UnitedHealth responded to the report by posting a statement online that described the Journal' s reporting as "deeply irresponsible" because the paper acknowledged the precise nature of the potential criminal allegations is unclear. "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," UnitedHealth said in the statement. "We stand by the integrity of our Medicare Advantage programme." The DOJ declined to comment. Jeffrey Sonnenfeld, founder of the Yale Chief Executive Leadership Institute, said the abrupt nature of the chief executive transition at UnitedHealth is quite telling. "The fact the board moved with this much speed means they obviously lost confidence in the chief executive. It's got to be pretty bad if they moved this fast," Sonnenfeld said. "It's astounding." UnitedHealth described the chief executive switch as a decision Witty made "for personal reasons" and the company said he has agreed to serve as a senior adviser. But Sonnenfeld suspects Witty was forced out. "'Personal reasons' is the humiliation of this implosion," he said. UnitedHealth is turning to a familiar face to clean up the mess: Stephen Hemsley, its former longtime chief executive and current chairman. Hemsley praised Witty for displaying "real integrity and compassion during one of the most difficult periods any company could endure". The new chief executive also, however, made clear his displeasure with UnitedHealth's stumbles. "To all stakeholders, including employees and shareholders, I am deeply disappointed in and apologise for the performance setbacks we have encountered from both external and internal challenges," Hemsley said during a conference call on Tuesday. Sonnenfeld hailed the decision by UnitedHealth's board to bring back Hemsley, who led the company to success between 2006 and 2017. "He does know where the bodies are buried, and he's the perfect guy to go to," he said. Morgan Stanley analyst Erin Wright agrees, describing Hemsley in a research report as "the most appropriate person to step in as CEO at this juncture in light of the recent setbacks". UBS analyst AJ Rice, in a report to clients, praised Hemsley as a "steady hand to lead the company in this turbulent time". Hemsley will have his work cut out for him. Beyond the reported DOJ investigation, UnitedHealth is facing intense scrutiny from multiple parts of the federal government. In its annual report, UnitedHealth acknowledged the company "has been involved or is currently involved in various governmental investigations, audits and reviews". UnitedHealth said these include "routine, regular and special investigations, audits and reviews" by a wide range of agencies, including the DOJ, the Internal Revenue Service, the Labor Department and the Securities and Exchange Commission. The developments have unnerved investors - especially the decision to abandon 2025 financial guidance. Bank of America downgraded UnitedHealth from "buy" to "neutral" on Tuesday, warning that it could take years for the company to recover. _CNN
CNN
15-05-2025
- Business
- CNN
One of America's biggest companies is imploding
UnitedHealth Group, one of America's biggest corporations and a member of the exclusive Dow Jones Industrial Average, is suddenly unraveling. The crisis engulfing UnitedHealth hit a crescendo this week when CEO Andrew Witty stepped down abruptly for 'personal reasons.' UnitedHealth also swiftly abandoned its financial guidance, blaming skyrocketing medical costs. And then The Wall Street Journal dropped the hammer, revealing that UnitedHealth is under federal criminal investigation for possible Medicare fraud. The developments have stunned investors, triggering a dramatic loss of confidence. UnitedHealth's (UNH) stock has lost half its value – a staggering $288 billion – in the span of a month. Its share price plunged on Thursday to its lowest level since April 2020, during the height of the pandemic. It's a spectacular reversal of fortunes for one of America's most powerful companies and the nation's largest health insurer. The trouble at UnitedHealth comes almost exactly six months after the murder of Brian Thompson, one of its top executives. The brazen shooting of Thompson, in Midtown Manhattan, captured international attention and surfaced deep public resentment toward the healthcare industry. The UnitedHealth selloff gathered steam on Thursday, with the Journal report of a federal criminal investigation driving UnitedHealth shares down another 13%, leaving them on track for their worst week since 1998, according to FactSet data. The DOJ's healthcare-fraud unit is overseeing an investigation into possible Medicare fraud at UnitedHealth, the Journal reported. UnitedHealth responded to the report by posting a statement online that described the Journal's reporting as 'deeply irresponsible' because the paper acknowledged the precise nature of the potential criminal allegations is unclear. '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,' UnitedHealth said in the statement. 'We stand by the integrity of our Medicare Advantage program.' The DOJ declined to comment. Jeffrey Sonnenfeld, founder of the Yale Chief Executive Leadership Institute, said the abrupt nature of the CEO transition at UnitedHealth is quite telling. 'The fact the board moved with this much speed means they obviously lost confidence in the CEO. It's got to be pretty bad if they moved this fast,' Sonnenfeld said. 'It's astounding.' UnitedHealth described the CEO switch as a decision Witty made 'for personal reasons' and the company said he has agreed to serve as a senior adviser. But Sonnenfeld suspects Witty was forced out. ''Personal reasons' is the humiliation of this implosion,' he said. UnitedHealth is turning to a familiar face to clean up the mess: Stephen Hemsley, its former longtime CEO and current chairman. Hemsley praised Witty for displaying 'real integrity and compassion during one of the most difficult periods any company could endure.' The new CEO also, however, made clear his displeasure with UnitedHealth's stumbles. 'To all stakeholders, including employees and shareholders, I am deeply disappointed in and apologize for the performance setbacks we have encountered from both external and internal challenges,' Hemsley said during a conference call on Tuesday. Sonnenfeld hailed the decision by UnitedHealth's board to bring back Hemsley, who led the company to success between 2006 and 2017. 'He does know where the bodies are buried, and he's the perfect guy to go to,' he said. Morgan Stanley analyst Erin Wright agrees, describing Hemsley in a research report as 'the most appropriate person to step in as CEO at this juncture in light of the recent setbacks.' UBS analyst AJ Rice, in a report to clients, praised Hemsley as a 'steady hand to lead the company in this turbulent time.' Hemsley will have his work cut out for him. Beyond the reported DOJ investigation, UnitedHealth is facing intense scrutiny from multiple parts of the federal government. In its annual report, UnitedHealth acknowledged the company 'has been involved or is currently involved in various governmental investigations, audits and reviews.' UnitedHealth said these include 'routine, regular and special investigations, audits and reviews' by a wide range of agencies, including the DOJ, the Internal Revenue Service, the Labor Department and the Securities and Exchange Commission. The developments have unnerved investors – especially the decision to abandon 2025 financial guidance. Bank of America downgraded UnitedHealth from 'buy' to 'neutral' on Tuesday, warning that it could take years for the company to recover.
CNN
15-05-2025
- Business
- CNN
One of America's biggest companies is imploding
UnitedHealth Group, one of America's biggest corporations and a member of the exclusive Dow Jones Industrial Average, is suddenly unraveling. The crisis engulfing UnitedHealth hit a crescendo this week when CEO Andrew Witty stepped down abruptly for 'personal reasons.' UnitedHealth also swiftly abandoned its financial guidance, blaming skyrocketing medical costs. And then The Wall Street Journal dropped the hammer, revealing that UnitedHealth is under federal criminal investigation for possible Medicare fraud. The developments have stunned investors, triggering a dramatic loss of confidence. UnitedHealth's (UNH) stock has lost half its value – a staggering $288 billion – in the span of a month. Its share price plunged on Thursday to its lowest level since April 2020, during the height of the pandemic. It's a spectacular reversal of fortunes for one of America's most powerful companies and the nation's largest health insurer. The trouble at UnitedHealth comes almost exactly six months after the murder of Brian Thompson, one of its top executives. The brazen shooting of Thompson, in Midtown Manhattan, captured international attention and surfaced deep public resentment toward the healthcare industry. The UnitedHealth selloff gathered steam on Thursday, with the Journal report of a federal criminal investigation driving UnitedHealth shares down another 13%, leaving them on track for their worst week since 1998, according to FactSet data. The DOJ's healthcare-fraud unit is overseeing an investigation into possible Medicare fraud at UnitedHealth, the Journal reported. UnitedHealth responded to the report by posting a statement online that described the Journal's reporting as 'deeply irresponsible' because the paper acknowledged the precise nature of the potential criminal allegations is unclear. '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,' UnitedHealth said in the statement. 'We stand by the integrity of our Medicare Advantage program.' The DOJ declined to comment. Sonnenfeld, a management professor at Yale, said the abrupt nature of the CEO transition at UnitedHealth is quite telling. 'The fact the board moved with this much speed means they obviously lost confidence in the CEO. It's got to be pretty bad if they moved this fast,' Sonnenfeld said. 'It's astounding.' UnitedHealth described the CEO switch as a decision Witty made 'for personal reasons' and the company said he has agreed to serve as a senior adviser. But Sonnenfeld suspects Witty was forced out. ''Personal reasons' is the humiliation of this implosion,' he said. UnitedHealth is turning to a familiar face to clean up the mess: Stephen Hemsley, its former longtime CEO and current chairman. Hemsley praised Witty for displaying 'real integrity and compassion during one of the most difficult periods any company could endure.' The new CEO also, however, made clear his displeasure with UnitedHealth's stumbles. 'To all stakeholders, including employees and shareholders, I am deeply disappointed in and apologize for the performance setbacks we have encountered from both external and internal challenges,' Hemsley said during a conference call on Tuesday. Sonnenfeld hailed the decision by UnitedHealth's board to bring back Hemsley, who led the company to success between 2006 and 2017. 'He does know where the bodies are buried, and he's the perfect guy to go to,' he said. Morgan Stanley analyst Erin Wright agrees, describing Hemsley in a research report as 'the most appropriate person to step in as CEO at this juncture in light of the recent setbacks.' UBS analyst AJ Rice, in a report to clients, praised Hemsley as a 'steady hand to lead the company in this turbulent time.' Hemsley will have his work cut out for him. Beyond the reported DOJ investigation, UnitedHealth is facing intense scrutiny from multiple parts of the federal government. In its annual report, UnitedHealth acknowledged the company 'has been involved or is currently involved in various governmental investigations, audits and reviews.' UnitedHealth said these include 'routine, regular and special investigations, audits and reviews' by a wide range of agencies, including the DOJ, the Internal Revenue Service, the Labor Department and the Securities and Exchange Commission. The developments have unnerved investors – especially the decision to abandon 2025 financial guidance. Bank of America downgraded UnitedHealth from 'buy' to 'neutral' on Tuesday, warning that it could take years for the company to recover.
