Humana, Inc. (NYSE: HUM)

This lawsuit is for anyone who acquired securities in Humana, Inc. (NYSE: HUM) from July 27, 2022 through January 24, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by continually downplaying the pent up demand for post pandemic medical services and the effect that the demand would have on the Company’s profits.

On June 13, 2023, one of Humana’s primary competitors, UnitedHeath Group Inc. (“UnitedHealth”) revealed that it was seeing “higher levels” of outpatient care activity due, potentially, to “pent-up demand or delayed demand being satisfied.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on June 16, 2923, Humana confirmed that it was also experiencing “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.” The Company further warned that it now expected reduced profitability and “assume[d] it will continue to experience moderately higher-than-expected trends for the remainder of the year.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on January 18, 2024, Humana released its fourth quarter and full year 2023 preliminary financial results, 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 were more than $2 per share less than what the Company had previously predicted. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on January 25, 2024, Humana disclosed that it expected higher levels of medical costs for all of 2024, and, as a result, the Company expected 2024 adjusted EPS of $16 per share — $10 less than the previous year and $13 below analysts’ expectations. On this news, Humana’s stock price fell $47.04, or 11.7%, to close at $355.36 per share on January 25, 2024, thereby injuring investors further. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Humana, Inc. (NYSE: HUM) from July 27, 2022 through January 24, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.