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3mo ago

UnitedHealth Faces Leadership Shakeup and DOJ Probes Amid $280 Billion Stock Wipeout

Stephen Hemsley returns as CEO to steer UnitedHealth through financial turmoil, criminal investigations, and insider trading allegations following Andrew Witty's resignation.

CEO Andrew Witty stepped down less than a month after a disastrous earnings report.
Stephen Hemsley, chief executive officer of UnitedHealth Group, speaks at a press conference on a General Electric Co. health care initiative in Washington, D.C., on Thursday, April 7, 2009. (Bloomberg News/The Minnesota Star Tribune/TNS)
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Overview

  • Stephen Hemsley, former CEO of UnitedHealth, has returned to lead the company after Andrew Witty's abrupt resignation, citing personal reasons.
  • UnitedHealth's stock has plummeted over 50% in the past month, erasing $280 billion in market value after disappointing earnings and ongoing legal challenges.
  • The Department of Justice is conducting criminal and antitrust investigations into UnitedHealth's Medicare Advantage practices, including allegations of fraudulent coding to inflate payments.
  • A class-action lawsuit accuses Hemsley, Witty, and former executive Brian Thompson of insider trading, claiming they sold shares before disclosing a DOJ antitrust probe.
  • UnitedHealth has withdrawn its 2025 financial outlook, citing higher-than-expected Medicare Advantage costs and operational forecasting challenges.