UnitedHealth Group admits it's under a federal investigation

Lawsuit says UnitedHealth Group misled stockholders

Stockholders are suing UnitedHealth Group over allegations that the company misled them. FOX 9's Mike Manzoni has the full story.

MINNETONKA, Minn. (FOX 9) - After dismissing a May report that the Department of Justice was investigating the insurance giant's business practices with Medicare, UnitedHealth Group admitted Thursday it is complying with a federal investigation.

UnitedHealth Group discloses federal investigation

What they're saying:

In a statement on Thursday morning, UnitedHealth Group acknowledged a criminal and civil investigation by the Department of Justice into its Medicare program.

Officials say they reached out to the DOJ after media reports surrounding the investigation became public. UnitedHealth Group now says it has begun complying with formal and civil requests from the DOJ.

"The Company has full confidence in its practices and is committed to working cooperatively with the Department throughout this process," the statement reads in part. "The Company has a long record of responsible conduct and effective compliance. Independent CMS audits confirm that the Company’s practices are among the most accurate in the industry, and, following a decade-long civil challenge by the Department to aspects of our Medicare Advantage business, a court-appointed Special Master concluded there was no evidence to support claims of wrongdoing."

The company also pointed out it has launched its own initiative to undertake "third party reviews of policies, practices, and associated processes and performance metrics for risk assessment coding, managed care practices, and pharmacy services."

Wall Street Journal report

The backstory:

Back in May, a Wall Street Journal report on the DOJ investigation sent UnitedHealth Group's stock tumbling.

The Wall Street Journal reported that federal investigators were looking into the company's Medicare Advantage program but acknowledged it wasn't clear exactly what the DOJ was looking into.

In a statement to FOX 9, UnitedHealth blasted the Wall Street Journal report, saying:

"We have not been notified by the Department of Justice of the supposed criminal investigation reported, without official attribution, in the Wall Street Journal today. The WSJ’s reporting is deeply irresponsible, as even it admits that the ‘exact nature of the potential criminal allegations’ is unclear."

By the numbers:

The day the Wall Street Journal report was posted, UnitedHealth Group's stock fell 13%, which came as the company dealt with weeks of losses that saw the stock drop from nearly $600 per share in early April to $266 on May 15.

On Thursday, the stock was down slightly after opening at $286.