UnitedHealth Group’s shares have plummeted for the second time this week, falling nearly 22% amid reports that the company is being investigated for possible Medicare fraud. The decline puts the stock on track to close down over 50% for the month, its worst stretch since going public in 1984.
The investigation, reportedly underway since last summer, has been linked to UnitedHealth’s Medicare Advantage and Optum Health insurance plans. Last month, shares fell nearly 20% after the company lowered its full-year profit outlook due to unexpected costs related to these plans.
Tuesday’s announcement that CEO Andrew Witty was stepping down further depressed the stock, which has lost over half its value since mid-April. The stock’s decline has also dragged the Dow into negative territory on multiple occasions, with UnitedHealth once again ranked 16th out of 30 blue-chip stocks.
Source: https://www.investopedia.com/unitedhealth-stock-headed-for-worst-month-ever-as-troubles-mount-11735411