Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, May 29, 2025 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises UnitedHealth Group Incorporated ("UnitedHealth" or the "Company") (NYSE: UNH) investors of a class action representing investors that bought securities between December 3, 2024 and April 16, 2025, inclusive (the "Class Period"). UnitedHealth investors have until July 7, 2025 to file a lead plaintiff motion. Investors are encouraged to contact at ...

Core Viewpoint - UnitedHealth Group is facing significant scrutiny and legal challenges following allegations of undisclosed payments to nursing homes aimed at reducing hospital transfers, which has led to concerns about patient care and corporate practices [1][3][4]. Group 1: Allegations and Legal Issues - Allegations have emerged that UnitedHealth incentivized nursing facilities to limit hospitalizations among Medicare Advantage enrollees, potentially compromising patient care [3][4]. - The company is currently involved in a securities fraud class action lawsuit, with claims that it improperly denied health coverage to enhance profits, leading to regulatory scrutiny [5][6]. - A significant drop in UnitedHealth's stock price occurred after the company reduced its financial guidance for 2025, attributing it to unexpected increases in care activity within its Medicare Advantage business [6][7]. Group 2: Management and Regulatory Scrutiny - The abrupt departure of CEO Andrew Witty on May 13, 2025, has added to the turmoil within the company, resulting in a more than 10% decline in share price on that day [7]. - Federal authorities are investigating whether UnitedHealth engaged in "upcoding," a practice that could inflate Medicare payments by misrepresenting patient diagnoses [8]. Group 3: Investigations and Responses - Hagens Berman, a law firm, is investigating the securities fraud claims against UnitedHealth and is encouraging investors who have suffered losses to come forward [2][9]. - The firm has raised concerns about the implications of the recent allegations on UnitedHealth's commitment to patient care and transparency [10].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of UnitedHealth Group Incorporated regarding a class action lawsuit due to allegations of misleading statements and corporate misconduct during a specified class period [1][3]. Summary by Relevant Sections Allegations - The complaint alleges that UnitedHealth engaged in a corporate strategy of denying health coverage to increase profits and share price [3]. - This strategy led to regulatory scrutiny and public outrage, culminating in the murder of Brian Thompson, which further fueled animosity towards the company [3]. - Following the murder, there was significant public backlash against UnitedHealth, with many Americans expressing support for the accused killer and demanding changes in the company's practices [3]. - Despite the changing corporate environment, UnitedHealth continued to adhere to its previous guidance, which was deemed unrealistic [3]. - The allegations assert that the defendants' public statements were materially false and misleading throughout the relevant period [3]. Class Action Details - The class period for the lawsuit is defined as December 3, 2024, to April 16, 2025 [3]. - Shareholders are encouraged to register for the class action by the deadline of July 7, 2025, to potentially become lead plaintiffs [4]. - Registration allows shareholders to receive updates on the case's progress through a portfolio monitoring software [4]. Firm Background - The Gross Law Firm is recognized nationally for its commitment to protecting investors' rights against deceit and illegal business practices [5]. - The firm aims to ensure that companies engage in responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [5].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of UnitedHealth Group Incorporated regarding a class action lawsuit alleging that the company engaged in misleading practices that harmed investors [1][2]. Allegations - The complaint claims that UnitedHealth had a corporate strategy of denying health coverage to increase profits and share price [1]. - This strategy led to regulatory scrutiny and public outrage, culminating in the murder of Brian Thompson, which further damaged the company's reputation [1]. - Following the incident, there was significant public animosity towards UnitedHealth, with many Americans expressing support for the accused killer and demanding changes in the company's practices [1]. - Despite the backlash, UnitedHealth continued to provide unrealistic guidance the day before Thompson's murder, which was inconsistent with its changing corporate strategies [1]. - The allegations assert that the defendants' public statements were materially false and misleading throughout the relevant period [1]. Class Action Details - The class period for the lawsuit is from December 3, 2024, to April 16, 2025, with a deadline for shareholders to register as lead plaintiffs by July 7, 2025 [2]. - Shareholders who register will receive updates on the case through portfolio monitoring software [2]. - Participation in the case incurs no cost or obligation for shareholders [2]. Firm's Mission - The Gross Law Firm aims to protect investors' rights against deceit and illegal business practices, ensuring companies adhere to responsible business conduct [3].

Core Insights - UnitedHealth Group's stock has declined over 50% since April 2025, prompting scrutiny into its revenue generation and key segments [1][13][15] Revenue Generation - UnitedHealth Group operates two primary businesses: UnitedHealthcare and Optum, with revenue generation roughly balanced between the two. In 2024, Optum accounted for 46% of total revenues, while UnitedHealthcare contributed 54% [2][13] - Optum's contribution to overall sales has been increasing, rising from 41% in 2021 to 46% in 2024, while UnitedHealthcare's share decreased from 59% to 54% during the same period [2] UnitedHealthcare Segment - The UnitedHealthcare segment focuses on providing a full range of health benefits and insurance products, currently facing pressure on profit margins due to rising medical costs [3][15] - The Medicare & Retirement division, which serves individuals aged 65 and older, generated $139.5 billion in revenue and $8.4 billion in EBITDA in 2024, representing 25% of the company's total revenue and 23% of its EBITDA. This segment is currently under criminal investigation for possible fraud [4][15] - The Employer & Individual segment generated $74.5 billion in gross revenue and $4.5 billion in EBITDA in 2024, accounting for 13% of the company's revenue and 12% of its total EBITDA [5] - The Community & State division reported $80.6 billion in revenue and $4.9 billion in EBITDA in 2024, making up 15% of the company's total revenue and 13% of its EBITDA [7] - The International segment generated $3.7 billion in revenue with EBITDA of approximately $222 million in 2024, accounting for less than 1% of the company's sales and profits [8] Optum Segment - Optum focuses on modernizing the healthcare system through technology and direct care delivery, with three key sub-segments: Optum Health, Optum Insight, and Optum Rx [9] - Optum Health generated $105.4 billion in gross revenue in 2024, with sales rising at an average rate of 25% since 2021, contributing 24% of the company's total EBITDA [10] - Optum Insight, focusing on data and analytics for the healthcare industry, generated $18.8 billion in sales and $3.6 billion in EBITDA, contributing 9% of the company's total EBITDA [11] - Optum Rx, a pharmacy benefit manager, generated $133.2 billion in gross revenue and $6.8 billion in EBITDA in 2024, accounting for 24% of the company's overall revenues and 18% of total EBITDA [12] Strategic Challenges - UnitedHealth Group is at a pivotal moment, facing scrutiny that impacts its stock and necessitates strategic shifts. Optum's increasing contribution to sales highlights its role in future growth, but challenges include potential political changes affecting the PBM landscape and the ongoing criminal investigation into Medicare fraud [13][15]

Core Insights - BAD BEAT Investing, led by Quad 7 Capital, has been providing investment opportunities for nearly 12 years, with a notable call in February 2020 to sell everything and go short, maintaining an average position of 95% long and 5% short since May 2020 [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, focusing on both long and short trades [1] - The investment strategy emphasizes short- and medium-term investments, income generation, special situations, and momentum trades, aiming to educate investors on becoming proficient traders [1] Benefits of BAD BEAT Investing - Investors can learn to understand market dynamics, execute well-researched trade ideas weekly, and utilize 4 chat rooms for discussions [2] - Daily complimentary summaries of key analyst upgrades and downgrades are provided, along with education on basic options trading and access to extensive trading tools [2]

Core Viewpoint - UnitedHealth Group Inc. has experienced a significant decline in stock value, reaching its most oversold levels since the 2008 financial crisis, with a year-to-date drop of 42% and a 30% decrease in the past month [1][2]. Technical Analysis - The stock is trading well below its eight-day, 20-day, 50-day, and 200-day simple moving averages (SMA), indicating a strong bearish trend. Current stock price is $293.58, compared to a 200-day SMA of $526.44, a 50-day SMA of $446.43, and a 20-day SMA of $348.43 [2]. - The Relative Strength Index (RSI) is at 26.75, indicating oversold conditions, while the Moving Average Convergence Divergence (MACD) is at a negative 45.29, highlighting the severity of the downtrend [3]. Market Sentiment - Hedge fund activity shows a split sentiment; Citadel Advisors reduced its stake by over 50%, selling nearly 800,000 shares, while Ken Fisher of Fisher Asset Management increased his position by nearly 53%, acquiring 1.82 million shares [4]. Company Fundamentals - Despite the stock's poor performance, UnitedHealth's vertically integrated model, combining insurance and services, continues to provide operational leverage. The company added a record 700,000 new clients in the latest quarter [5]. - The valuation stands at 12.8 times forward earnings, which some analysts believe is attractive given the company's fundamentals [5]. Contrarian Perspective - While technical indicators suggest a bearish outlook, some analysts see potential for a contrarian rebound, citing oversold signals not seen in 16 years, contingent on improving fundamentals and regulatory conditions [6].

Core Viewpoint - UnitedHealth Group has experienced a significant stock decline of over 50% since April 2024, primarily due to rising medical costs, leadership changes, and potential legal issues related to Medicare fraud [1][2][5]. Group 1: Financial Performance - The company initially forecasted adjusted earnings of $30 per share for 2025, but later revised its full-year earnings outlook down to a range of $24.65 to $25.15 per share [2][3]. - The Medical Benefits Ratio increased from 82% in 2022 to 85.5% in 2024, leading to a decrease in net profit margins from 6.2% to 3.6% during the same period [3]. Group 2: Leadership Changes - CEO Andrew Witty's unexpected departure unsettled investors, prompting the return of former CEO Stephen Hemsley, which was perceived as a sign of panic rather than a smooth transition [4]. Group 3: Legal and Regulatory Issues - Reports of a criminal investigation into Medicare fraud have emerged, which could significantly impact the company's revenue, as Medicare accounted for a quarter of total revenues last year [5].

Core Insights - UnitedHealth (NYSE: UNH) has experienced a significant decline in stock price, dropping nearly 30% from approximately $600 in early April to $295, marking a plunge into deeply oversold territory with a Relative Strength Index (RSI) of 27.78, a level not seen since the 2008 financial crisis [1][2][5] Group 1: Stock Performance and Technical Indicators - The RSI below 30 indicates that UNH is oversold and may be poised for a rebound, as seen in previous instances when the stock hit similar levels [2] - The stock has found some stability after an insider initiative to purchase a large number of shares, which has helped boost investor confidence [7] Group 2: Leadership and Regulatory Challenges - The troubles for UNH began with the abrupt resignation of CEO Andrew Witty on May 13, leading to the suspension of the company's 2025 financial outlook due to rising medical costs and increased demand for care [5][6] - Stephen Hemsley, former CEO, has returned to stabilize the company, expressing disappointment in recent performance but maintaining confidence in long-term growth [6] Group 3: Analyst Ratings and Market Sentiment - Truist has cut UnitedHealth's price target from $580 to $360 while maintaining a "Buy" rating, citing suspended guidance and leadership changes as key factors [7] - TD Cowen downgraded UNH to "Hold," reducing its target from $520 to $308, attributing this to coding pressures, regulatory changes, and ongoing investigations [8]

Core Viewpoint - The S&P 500 index, despite its heavy weighting towards large companies, has shown strong performance over the years, with a 173% increase from 2015 to 2025, and a total return of 226% including dividends [2] Company Overview: UnitedHealth Group - UnitedHealth Group has faced significant challenges recently, particularly in its UnitedHealthcare business, leading to a decline in stock prices [5][11] - The company has a strong history of dividend growth, with a 320% increase over the past decade, currently offering a 2.8% dividend yield, which is more than double the average yield of S&P 500 dividend payers [6] Financial Performance and Outlook - The company added 2.1 million new Medicare Advantage patients in 2024, indicating growth potential in this segment [6] - Management's earnings guidance has been revised downward due to higher-than-expected medical expenditures, with initial projections for 2025 earnings per share revised from $28.15-$28.65 to $24.65-$25.15, and ultimately suspending the earnings outlook entirely [8][9] - The stock is currently trading at a low valuation of 12.4 times trailing-12-month earnings, suggesting potential for future growth as the company has historically increased earnings per share by 10.9% annually over the past decade [15] Competitive Position - UnitedHealth Group's Optum Health segment employs around 10% of America's physicians, providing it with significant control over medical expenses compared to competitors [13] - The company is expected to maintain a competitively priced option in the market due to its integrated business model, despite potential short-term earnings contractions related to Medicare Advantage planning [14]