NEW YORK, Aug. 04, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Humana Inc. (NYSE: HUM) on behalf of long-term stockholders following a class action complaint that was filed against Humana on June 3, 2024 with a Class Period from July 27, 2022, to January 24, 2024. Our investigation concerns whether the board of directors of Humana have breached their fiduciary duties to the company.
Humana is a health insurance company that provides medical benefit plans to members.
The Humana class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that defendants downplayed pressures on Humana’s adjusted earnings-per-share resulting from increased medical costs associated with pent-up demand for healthcare procedures (especially as COVID concerns abated) which, contrary to Humana’s assurances, resulted in increased utilization rates and costs.
The Humana class action lawsuit further alleges that on June 13, 2023, UnitedHealth Group Inc., one of Humana’s principal health insurer competitors, revealed that it was seeing “higher levels” of outpatient care activity and suggested that this higher utilization was due to “pent-up demand or delayed demand being satisfied.” On this news, the price of Humana common stock fell more than 11%, according to the complaint.
Then, on June 16, 2023, the Humana class action lawsuit further alleges that Humana reported “higher than anticipated non-inpatient utilization trends, predominately in the categories of emergency room, outpatient surgeries, and dental services, as well as inpatient trends that have been stronger than anticipated in recent weeks, diverging from historical seasonality patterns.” On this news, the price of Humana common stock fell, according to the complaint.
The Humana class action lawsuit further alleges that on January 18, 2024, Humana revealed that its benefits expense ratio had increased to approximately 91.4% for the fourth quarter of 2023 and approximately 88% for the full year 2023. On this news, the price of Humana common stock fell nearly 8%, according to the complaint.
Finally, on January 25, 2024, the complaint further alleges that Humana announced a loss of $4.42 per share for the fourth quarter of 2023 that was “driven by higher than anticipated inpatient utilization . . . and a further increase in non-inpatient trends,” and stated that it expected the higher level of medical costs would “persist throughout 2024.” On this news, the price of Humana common stock fell nearly 12%, according to the Humana class action lawsuit.
If you are a long-term stockholder of Humana, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
