UnitedHealth Group's Double Trouble: DOJ Probe and Leadership Shake-up

Shares of UnitedHealth Group tumbled nearly 7% in premarket trading following a Wall Street Journal report that the U.S. Department of Justice is investigating the firm for potential Medicare fraud. The probe compounds existing issues for the health insurer, including leadership volatility and rising operational costs.

The investigation has sharpened investor concerns, exacerbated by UnitedHealth's earlier setbacks including the abrupt resignation of CEO Andrew Witty and the retraction of its 2025 financial projections. The health insurance industry is already under fire after several large companies, including UnitedHealth, were accused of incentivizing brokers with kickbacks.

With the company's stock already suffering a downturn triggered by unexpected earnings losses, UnitedHealth is bracing for more market instability. Further deepening the crisis, the company is also facing legislative inquiries into its Medicare billing practices, adding layers of complexity to its current challenges.

(With inputs from agencies.)