DOJ’s Stethoscope Sends UnitedHealth to the Stock Market ICU
UnitedHealth’s Medicare Fraud Probe Sparks Market Turmoil

UnitedHealth Group (UNH) shares cratered 16% on Thursday, May 15, 2025, plunging to a five-year low after a Wall Street Journal report unveiled a U.S. Department of Justice criminal investigation into potential Medicare fraud. For the health insurance giant, already staggering from a barrage of setbacks, this news is a gut punch that’s sent investors running for cover.
The DOJ probe is the latest chapter in UnitedHealth’s unfolding drama. A civil fraud investigation into its Medicare practices surfaced in February, followed by U.S. Senator Chuck Grassley’s inquiry into the company’s billing methods. Toss in CEO Andrew Witty’s sudden exit, a scrapped 2025 forecast that triggered an 18% stock drop on Tuesday, and soaring medical costs, and it’s no wonder the company’s stock is in freefall. A recent lawsuit accusing major insurers of paying kickbacks to brokers only adds fuel to the fire. “The stock is already in the doghouse with investors, and additional uncertainty will only pile on,” said James Harlow, senior vice president at Novare Capital Management, a UnitedHealth shareholder.
