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UnitedHealth Group Plunges 7.17% on CEO Change, Outlook Suspension
Generated by AI AgentAinvest Movers Radar
Tuesday, May 13, 2025 7:03 am ET1min read
On May 13, 2025,
Group's stock experienced a significant drop of 7.17% in pre-market trading, reflecting investor concerns and market volatility.UnitedHealth Group announced the appointment of Stephen J. Hemsley as the new CEO, effective immediately. This change comes after Andrew Witty stepped down due to personal reasons. Hemsley will continue to serve as the company's board chairman, while Witty will act as a senior advisor to Hemsley.
The company also revealed that it has suspended its 2025 outlook due to higher-than-expected medical expenses, with a projected recovery in growth by 2026. This decision has raised concerns among investors about the company's financial health and future performance.
UnitedHealth Group is currently facing a securities class action lawsuit, which alleges that the company made misleading statements regarding its ability to meet its guidance range for net and adjusted earnings per share. The lawsuit covers the period from December 3, 2024, to April 16, 2025, and seeks to recover damages for investors who purchased UnitedHealth securities during this time.
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