UnitedHealth pares losses after firm says media report allegations found inaccurate by DOJ

ReutersMay 21, 2025 2:03 PM

Shares of UnitedHealth UNH.N down 5.3% in morning trading; stock was down more than 8% premarket

UNH stock fell after Guardian reported the insurer secretly paid nursing homes thousands in bonuses to help slash hospital transfers for ailing residents to save costs

UNH, however, says the U.S. Department of Justice has "investigated these allegations, interviewed witnesses, and obtained thousands of documents that demonstrated the significant factual inaccuracies in the allegations"

Company's shares this year have come under pressure from CEO exit, suspension of FY forecast, WSJ report of criminal probe for possible Medicare fraud; down 40.4% YTD

Separately, HSBC cuts rating on stock to "reduce" from "hold", slashes PT to $270 from $490

"While new CEO has a clean(er) slate to start, there are risk to earnings growth along with policy overhang" - HSBC

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