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HUM.US
id: 1242

Humana (HUM) Rising Costs Case

D. Delaware
Court
1:24-cv-00655
Case number
27 Jul 2022
Class period Start
24 Jan 2024
Class period End
02 Aug 2024
Lead Plaintiff motion deadline
  • $HUM stockholder filed a claim vs. Humana for downplaying rising medical costs' impact on EPS.
  • On January 25, 2024, after the financial results, $HUM fell 12%, losing $5.6B+ of shareholder value.
  • Humana investors can join this case and be notified about potential recovery.
Case Details:

On July 27, 2022, Humana reported Q2 EPS of $8.67, beating expectations, due to better-than-expected medical costs in Medicare Advantage and Medicaid.

Humana assured investors that healthcare costs were lower than expected and there was no pent-up demand affecting profits.

On June 13, 2023, investors learned of profitability pressures when competitor UnitedHealth reported higher outpatient care activity.

Despite more disclosures, Humana downplayed the impact of higher medical costs and increased utilization, affecting its adjusted EPS.

On January 18, 2024, Humana reported its financial results for the Q4 and full year 2023 with higher expenses and lower EPS, causing $HUM to drop 8%.

On January 25, 2024, Humana reported a Q4 loss and expected higher costs in 2024, lowering EPS forecast.

On this news, $HUM fell 12% the same day.

Based on these events, $HUM stockholder filed a claim against Humana and its leaders, accusing them of the following:
  • Humana downplayed increased medical costs' impact on EPS, despite rising utilization rates.
  • Despite assurances, pent-up demand for healthcare procedures drove up costs.
Considering all the representations, investors suspect Humana downplayed rising medical costs' impact on EPS, despite increased utilization rates.
Case Status
Lead Plaintiff Submission
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
25 January 2024
Filing date
03 June 2024
Lead Plaintiff Deadline
02 August 2024
Collecting participants…