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UnitedHealth shares slide as criminal probe report adds to investor fears

1. UNH shares fell over 15% amid DOJ investigation for Medicare fraud. 2. Company faces multiple inquiries and leadership changes impacting investor confidence. 3. Market cap could drop to $280 billion amidst ongoing turmoil. 4. Investors are concerned about rising medical costs and volatile outlook. 5. Previous earnings miss in April initiated a significant selloff.

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FAQ

Why Very Bearish?

The DOJ investigation and leadership upheaval significantly undermine investor confidence, reminiscent of past scandals that led to severe share declines, especially when regulatory issues arise in the healthcare sector.

How important is it?

The investigation amplifies existing issues, likely leading to significant investor hesitancy and immediate market impact.

Why Short Term?

Immediate concerns around DOJ investigations can drive prices down rapidly, as seen in similar stock reactions to regulatory news.

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