UnitedHealth nears victory in DOJ Medicare fraud case

UnitedHealth Group has received a significant boost in its ongoing legal battle with the Department of Justice (DOJ), as a court-appointed special master recommended that the charges against the company, alleging overbilling of Medicare by over $2 billion, be dismissed due to insufficient evidence. This recommendation has led to a positive outlook for UnitedHealth, with analysts from J.P. Morgan and Bernstein maintaining 'Buy' ratings on the stock. The special master's findings indicate that the DOJ's case lacks materiality and knowledge elements, which are critical under the False Claims Act. Following these developments, UnitedHealth's stock rose by 2%, reflecting investor confidence. The judge overseeing the case will consider this recommendation before making a final decision, potentially marking a pivotal moment for the company. Despite this positive news, UnitedHealth's stock has seen a 3% decline over the past year, indicating ongoing volatility in the market.