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Humana Inc. (NYSE: HUM) Investor Alert: Lawsuit seeks to recover Losses for Investors

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An investor, who purchased shares of Humana Inc. (NYSE: HUM), filed a lawsuit in the U.S. District Court for the District of Delaware over alleged violations of Federal Securities Laws by Humana Inc. in connection with certain allegedly false and misleading statements made between July 27, 2022, and January 24, 2024.

If you purchased a significant amount of shares of Humana Inc. (NYSE: HUM) between July 27, 2022, and January 24, 2024, and / or if you purchased any NYSE: HUM shares prior to July 2022 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: August 2, 2024. NYSE: HUM investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

Louisville, KY based Humana Inc., together with its subsidiaries, provides medical and specialty insurance products in the United States.

On June 13, 2023, UnitedHealth Group Inc. (“UnitedHealth”), one of Humana’s primary health insurer competitors, revealed that it was seeing “higher levels” of outpatient care activity and suggested that higher utilization rates were due to “pent-up demand or delayed demand being satisfied.” UnitedHealth further explained that it was “seeing very strong volumes” in certain areas, including ambulatory surgery, and an overall “higher number of cases that are being performed.”

Oon June 16, 2023, Humana Inc. confirmed that it also was seeing “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.” Although the Company re-affirmed its full year insurance segment benefits expense ratio guidance (a key measure of profitability) of between 86.3% and 87.3%, it warned investors that it “now expects to be at the top end of this full year range”-i.e., reduced profitability. Additionally, Humana explained that it now “assume[d] it will continue to experience moderately higher-than-expected trends for the remainder of the year.”

On January 18, 2024, Humana Inc. preliminarily released its financial results for the fourth quarter and full year 2023, revealing 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. As a result, the Company’s 2023 adjusted EPS was only $26.09 per share, or more than $2 per share less than what the Company had predicted in November 2023.

Finally, on January 25, 2024, Humana Inc. announced a loss for the fourth quarter of 2023, and stated that it expected the higher level of medical costs would persist for all of 2024. As a result, Humana revealed that it expected 2024 adjusted EPS of only $16 per share (a $10 per share decrease from 2023 and well below analysts’ expectations of $29 per share).

Shares of Humana Inc. (NYSE: HUM) declined from $530.54 per share on October 17, 2023, to as low as $298.61 per share on May 01, 2024.

According to the complaint the plaintiff alleges on behalf of purchasers of Humana Inc. (NYSE: HUM) common shares between July 27, 2022, and January 24, 2024, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between July 27, 2022, and January 24, 2024, the Defendants continued to assure investors—and analysts who repeatedly inquired about potential pent-up demand for healthcare services that built-up under COVID restrictions—that “in-patient unit costs and non-in-patient trends [were] coming in lower than [the Company] initially estimated” and that“there really isn’t pent-up demand that [the Company has] to be concerned about” negatively impacting utilization rates and profitability, and that Humana made several additional disclosures about its profitability and financial condition, however, Defendants continued to downplay pressures on the Company’s adjusted EPS resulting from increased medical costs associated with pent-up demand for healthcare procedures (especially as COVID concerns abated) which, contrary to the Company’s assurances, resulted in increased utilization rates and costs.

Those who purchased shares of Humana Inc. (NYSE: HUM) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About:
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

 

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