UnitedHealth shares sink on criminal probe report

UnitedHealth Group shares plunged nearly 13% on Thursday after a Wall Street Journal report that the US Department of Justice had begun a criminal investigation into the company for potential Medicare fraud.

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The reported probe adds to a string of recent setbacks for the healthcare conglomerate that has erased more than half, or over $300 billion, from its market value since November, when shares were trading at record highs.

UnitedHealth’s shares dropped to $267 in midday trade, near five-year lows. The stock is the worst-performing Dow component so far this year.

“The stock is already in the dog house with investors, and additional uncertainty will only pile on,” said James Harlow, senior vice president at Novare Capital Management, which owns shares in UnitedHealth.