Class Action Lawsuit Filed Against Humana Inc. Alleging Securities Fraud

Pomerantz LLP, a renowned law firm specializing in corporate, securities, and antitrust class litigation, has announced the filing of a class action lawsuit against Humana Inc. The lawsuit alleges securities fraud and other unlawful business practices by Humana and certain officers and/or directors of the company. Investors who purchased or acquired Humana securities during the Class Period have until August 2, 2024, to request to be appointed as Lead Plaintiff for the class.

The class action stems from a series of events that impacted Humana’s stock price. On June 13, 2023, UnitedHealth Group Inc., a competitor of Humana, disclosed higher levels of outpatient care activity, suggesting increased utilization rates due to pent-up or delayed demand. This news caused Humana’s stock price to drop over 11% on June 14, 2023.

Subsequently, on June 16, 2023, Humana confirmed higher-than-anticipated non-inpatient utilization trends, particularly in emergency room visits, outpatient surgeries, and dental services. The company also noted stronger-than-expected inpatient trends. As a result, Humana’s stock price fell nearly 4% on June 16, 2023.

On January 18, 2024, Humana released its financial results for the fourth quarter and full year 2023, revealing an increase in the benefits expense ratio. The company’s adjusted earnings per share (EPS) for 2023 were also lower than previously predicted. This news caused Humana’s stock price to drop approximately 8% on January 18, 2024.

Finally, on January 25, 2024, Humana announced a loss for the fourth quarter of 2023 and projected higher medical costs throughout 2024. The company’s adjusted EPS for 2024 was significantly lower than analysts’ expectations. As a result, Humana’s stock price fell nearly 12% on January 25, 2024.

Investors who believe they may be affected by the alleged securities fraud are encouraged to contact Danielle Peyton at Pomerantz LLP. The full complaint can be obtained from the law firm’s website.

Pomerantz LLP has a long-standing reputation for advocating on behalf of victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The firm has successfully recovered billions of dollars in damages for class members.

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