UnitedHealth falls over 2% pre-market

UnitedHealth falls over 2% pre-market

UnitedHealth Group Incorporated (NYSE: UNH) saw its stock drop by over 2% in pre-market trading on July 2, 2025. The decline comes amidst ongoing regulatory scrutiny and a class action lawsuit filed against the company.

The class action lawsuit, announced by Bragar Eagel & Squire, P.C. on July 28, 2025 [1], alleges that UnitedHealth made false and misleading statements regarding its corporate strategy of denying health coverage to boost profits and its share price. The lawsuit claims that these practices resulted in regulatory scrutiny and public outrage, ultimately leading to changes in the company's corporate practices. Investors who purchased or otherwise acquired UnitedHealth securities between December 3, 2024, and April 16, 2025, are eligible to participate in the lawsuit.

Investors are also closely watching UnitedHealth's second-quarter earnings report, scheduled for July 2, 2025. The company's stock has been under pressure due to challenges in its Medicare Advantage program and Optum Health physician practices. The second-quarter earnings report will provide insights into how the company plans to stabilize these units and provide updated guidance for the full year [2].

UnitedHealth's stock has seen significant volatility in recent months, with the share price cut nearly in half since mid-May. The company is also facing criminal and civil investigations by the Department of Justice into its Medicare billing practices [2]. Despite these challenges, the company has maintained that it will cooperate with the investigations and has taken steps to address public concerns, including hiring third-party auditors to review its practices [2].

The pre-market drop in UnitedHealth's stock reflects investor concerns over the company's ability to navigate these challenges and regain investor confidence. However, the company's management has emphasized its commitment to earning back trust and confidence from investors.

References:
[1] https://www.globenewswire.com/news-release/2025/07/28/3122922/0/en/UNITEDHEALTH-CLASS-ACTION-ALERT-Bragar-Eagel-Squire-P-C-Announces-that-a-Class-Action-Lawsuit-Has-Been-Filed-Against-UnitedHealth-Group-Incorporated-and-Encourages-Investors-to-Con.html
[2] https://www.cnbc.com/2025/07/28/unitedhealth-unh-q2-earnings-preview.html