Core Viewpoint - Edelson Lechtzin LLP is investigating potential violations of federal securities laws and breaches of fiduciary duties involving UnitedHealth Group Inc. due to allegations of misleading business information and improper practices under investigation by the U.S. Justice Department [1][3]. Company Overview - UnitedHealth Group Inc. specializes in health insurance and healthcare services [2]. Allegations of Wrongdoing - The U.S. Department of Justice is conducting a civil fraud investigation concerning UnitedHealth's practices related to patient diagnoses that allegedly forced higher payments from the Medicare Advantage program [3]. - More than half of Medicare recipients receive benefits through Medicare Advantage, and insurers receive reimbursements based on diagnostic codes, with higher payments for more severe illnesses [3][4]. - The investigation reportedly stems from concerns regarding UnitedHealth's acquisitions of healthcare providers and data companies, amid attempts by the Biden administration to constrain payments to Medicare Advantage plans [4]. Market Reaction - Following the news of the investigation, UnitedHealth's stock has declined approximately 9% [5].
INVESTIGATION ALERT: Edelson Lechtzin LLP Announces Investigation UnitedHealth Group Inc. (NYSE: UNH) and Urges Investors with Substantial Losses to Contact the Firm