The UnitedHealth group is under investigation by the US Department of Justice (DOJ) for possible Medicare fraud, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
The exact details of the criminal allegations are not clear. But according to the Wall Street Journal, the DOJ’s healthcare fraud unit has been actively investigating since at least last summer.
After the Journal’s report came out, the company’s stock dropped 6.7% in after-hours trading, Reuters reported.
Back in February, the Journal had also reported that the DOJ was doing a civil fraud investigation into how the company reported medical diagnoses that led to extra payments from Medicare Advantage plans.
Along with financial problems caused partly by rising medical costs, UnitedHealth Group is also facing issues after its CEO, Andrew Witty, suddenly stepped down on Tuesday, saying it was for “personal reasons.” He has been replaced by the company’s former CEO, Stephen Hemsley.
The Wall Street Journal also reported that the company is under investigation for possible antitrust violations.
UnitedHealth Group’s branch, UnitedHealthcare, came into the public eye in December when its CEO, Brian Thompson, was shot and killed in a widely reported incident in Manhattan.
The man accused of the shooting, Luigi Mangione, has pleaded not guilty to several state and federal charges, including murder, stalking, and terrorism, a report by Forbes said.