Faruqi & Faruqi, LLP, a leading national securities law firm, is conducting an investigation into potential claims on behalf of investors of Humana Inc. (“Humana” or the “Company”) (NYSE: HUM). The firm seeks to inform investors of the upcoming August 2, 2024, deadline for the appointment of a lead plaintiff in a federal securities class action filed against the Company.
Established in 1995, Faruqi & Faruqi has been at the forefront of advocating for investors’ rights, successfully recovering hundreds of millions of dollars through diligent legal action. With offices strategically located across New York, Pennsylvania, California, and Georgia, the firm has become a prominent figure in securities litigation.
The current investigation focuses on allegations that Humana and certain executives breached federal securities laws by providing false and/or misleading statements, in addition to failing to disclose critical information. Specifically, the allegations emphasize that the Company’s reassurances overshadowed the true impact of increased medical costs stemming from a surge in demand for healthcare procedures—particularly as concerns over COVID-19 began to wane. This surge reportedly led to heightened utilization rates and, consequently, escalating costs, contrary to the Company’s optimistic statements.
Investors started to comprehend the gravity of the situation on June 13, 2023, when UnitedHealth Group Inc., a key competitor in the health insurance sector, disclosed experiencing “higher levels” of outpatient care and suggested that these were due to previously delayed demands now being met. These admissions raised concerns that Humana was facing similar challenges, resulting in a significant drop in Humana’s stock price by more than 11% following the announcement.
Despite subsequent disclosures by Humana regarding its financial wellbeing and profitability, the Company continued to underplay the pressures arising from pent-up healthcare demand—affecting its adjusted EPS and leading to further costs and increased utilization rates.
The role of lead plaintiff is not assigned lightly. This significant position is given to the investor with the largest financial interest in the pursuit of justice for the class, tasked with directing and overseeing the course of the litigation. Those part of the class have the freedom to request appointment as lead plaintiff through their chosen counsel or opt to remain absent from direct participation, without impacting their potential to share in any eventual recuperation.
Additionally, Faruqi & Faruqi, LLP encourages individuals with insider knowledge regarding Humana’s operations, including whistleblowers, former employees, and shareholders, to come forward. Engaging with the firm could provide crucial information beneficial to the case.
This investigatory effort reflects Faruqi & Faruqi, LLP’s commitment to upholding investor rights and pursuing transparency and accountability within the financial markets. Interested parties are urged to join in the pursuit of justice and potential recovery against Humana Inc. for alleged securities law violations.
