UnitedHealth Stock (UNH) Tumbles as DOJ Expands Criminal Investigation - What Investors Need to Know

UnitedHealth shares hit turbulence as the Department of Justice deepens its criminal probe into the healthcare giant's practices.

The Expanding Investigation

DOJ prosecutors are digging deeper into UNH's business operations, sending shockwaves through traditional healthcare investments. The widening probe signals potentially serious regulatory headwinds ahead.

Market Reaction

Investors dumped UNH positions as news broke, demonstrating how centralized healthcare stocks remain vulnerable to regulatory whims—unlike decentralized digital assets that operate beyond traditional oversight.

Another reminder that while legacy institutions play regulatory whack-a-mole, cryptocurrency markets continue marching toward new paradigms without asking for permission.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

The DOJ’s criminal division is now examining how UnitedHealth’s pharmacy benefit arm, Optum Rx, manages prescriptions and reimburses doctors. This broadens the earlier probe into Medicare Advantage billing practices, according to people familiar with the matter.

While the DOJ has not accused UnitedHealth or its executives of wrongdoing, the expanded scope adds another LAYER of risk.

More Legal Challenges on the Horizon

In addition to the DOJ inquiry, UnitedHealth is facing a civil fraud investigation over its Medicare operations. At the same time, the FTC is pressing forward with a lawsuit accusing UnitedHealth’s OptumRx, along with other large PBMs (pharmacy benefit managers), of inflating insulin prices.

However, the company has rejected the allegations, calling them “baseless.”

UNH Stock Is Under Pressure in 2025

The ongoing investigations come at a turbulent time for the health care giant. Rising medical costs, regulatory headwinds, and leadership changes have weighed on sentiment, with UNH stock already down over 40% year-to-date.

The latest DOJ action adds fresh uncertainty for investors in the nation’s largest Medicare Advantage provider.

What Is the Future of UNH Stock? 

Turning to Wall Street, UNH stock has a Strong Buy consensus rating based on 18 Buys, two Holds, and one Sell assigned in the last three months. At $316.10, the average UnitedHealth stock price target implies a 5.22% upside potential.