UnitedHealth Group Faces Crisis Amid DOJ Investigation

UnitedHealth Group's stock plummeted 18% as the U.S. Department of Justice investigates potential Medicare fraud. This development follows CEO Andrew Witty's exit and raised concerns among investors. The company's fundamentals remain steady according to analysts, despite ongoing challenges and significant market value loss since November.

UnitedHealth Group shares nosedived by 18% on Thursday, driven by investor concerns following a Wall Street Journal report that the U.S. Department of Justice is conducting a criminal investigation into alleged Medicare fraud by the company.

Since November, the healthcare giant has suffered a series of setbacks, leading to a dramatic loss of over half its market value, or more than $300 billion, and a drop to its lowest share price in five years at $248.92. The allegations of Medicare fraud compound calamities including CEO Andrew Witty's abrupt exit and withdrawal of project forecasts for 2025.

UnitedHealth insists it has not been informed of the DOJ investigation, while reports of civil probes persist. Analysts like Oppenheimer's Michael Wiederhorn maintain the solidity of the company's fundamentals, but acknowledge the task of restoring market confidence amid ongoing economic uncertainties.

(With inputs from agencies.)