UnitedHealth Group Faces Unprecedented Crisis Amid DOJ Probe

UnitedHealth Group shares suffered a significant 16% drop, plunging to a five-year low on Thursday, following a Wall Street Journal report about a Department of Justice investigation into potential Medicare fraud.

The health insurer faces mounting issues, including multiple government inquiries, leadership changes, and financial outlook uncertainties, with minimal details emerging about the investigation, heightening investor concerns.

CEO Andrew Witty's abrupt departure, combined with the company's forecast withdrawal, preceded this crisis, leading UnitedHealth shares to a historic low, causing ripple effects throughout the health insurance industry.

(With inputs from agencies.)