🧑‍⚕️ UnitedHealth Group is feeling under the weather. Shares dropped 7.20% today after the WSJ reported that the Department of Justice is investigating UnitedHealth’s Medicare billing practices. The civil investigation will examine whether the company fabricates diagnoses for Medicare Advantage patients in order to receive more funding. For the record, this investigation is separate from the Justice Department antitrust probe into the insurance giant that began last February.
💻 Crowdstrike has answered the question, how many different federal agencies can be probing a firm at once? Shares declined 6.75% after Bloomberg reported that both the DOJ and the SEC are investigating the cybersecurity giant’s lucrative deal with tech firm Carahsoft. In 2023, Crowdstrike paid Carahsoft $32 million for tech services to provide cybersecurity to the IRS, but the IRS reportedly never actually purchased the products. And those agencies aren’t the only ones poking around: In September, the FBI raided Carahsoft headquarters—never a good sign.
💰 Coinbase and the SEC have worked out on a remix. Shares of Coinbase fell 8.27% after the company announced that the SEC has preliminarily agreed to abandon its two-year case against the crypto trading platform. Back in 2023 during the peak of post-FTX crypto ire, the SEC charged the company with operating an unregistered securities exchange. The decision is still pending commission approval vote, which will likely happen next week, according to the WSJ. While the case being thrown out should be good news to investors, many were likely already expecting the announcement since President Trump has vowed to ease the regulatory pressure on the crypto industry.—LB
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