SHAREHOLDER ALERT: The Pomerantz Law Firm announces the filing of a class action lawsuit against Humana Inc.

NEW YORK, June 15, 2024 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against Humana Inc. (“Humana” or the “Company”) (NYSE: HUM). Investors are advised to Danielle Peyton at (email protected) or 646-581-9980 (or 888.4-POMLAW), toll-free, extension 7980. For inquiries by email, you will be asked to provide your mailing address, telephone number and the number of shares purchased.

The class action lawsuit concerns whether Humana and certain of its officers and/or directors engaged in securities transactions Fraud or other unlawful business practices.

You have until 2 August 2024to ask the Court to appoint you as lead plaintiff for the class if you are a shareholder who purchased or otherwise acquired Humana securities during the Class Period. A copy of the complaint is available att www.pomerantzlaw.com.

(Click here for information on joining the class action lawsuit.)

At June 13, 2023UnitedHealth Group Inc. (“UnitedHealth”), one of Humana’s main competitors in the health insurance space, announced that it was seeing “higher levels” of outpatient treatment activity and suggested that the higher utilization rates were due to “pent-up or delayed demand that needs to be met.” UnitedHealth further stated that it was seeing “very high volumes” in certain areas, including outpatient surgery, and that it was “seeing more cases” overall.

Given the similarities between Humana and UnitedHealth’s businesses and the likelihood that Humana also suffered from increased utilization and higher costs due to pent-up demand, Humana’s stock price fell $57.63 per share, or more than 11%, and closed at $455.00 per share on 14th June2023.

Days later, on 16 June 2023Humana confirmed that it also saw “higher than expected trends in non-inpatient utilization, primarily in the emergency room, outpatient surgery and dental categories, as well as inpatient trends that have been stronger than expected in recent weeks and deviated from historical seasonal patterns.” Although the company reiterated its full-year insurance segment expense ratio (a key profitability indicator) guidance of 86.3% to 87.3%, it warned investors that it “now expects to be at the high end of that range for the full year” — meaning lower profitability. In addition, Humana stated that it now “expects to continue to experience moderately higher than expected trends for the remainder of the year.”

Following this news, Humana’s share price fell $18.20 per share or almost 4% and closed at $445.65 per share on 16 June2023.

At January 18, 2024Humana released its preliminary financial results for the fourth quarter and full year 2023 and announced that the benefit expense ratio increased to approximately 91.4% in the fourth quarter of 2023 and approximately 88% for the full year 2023. As a result, the company’s adjusted earnings per share for 2023 was only $26.09 per share or more than $2 per share less than the company had forecast in November 2023.

Following this news, Humana’s share price fell $35.78 per share or around 8%, and closed at 411,98 € per share on 18 January2024.

Finally January 25, 2024Humana reported a loss for the fourth quarter of 2023 and stated that the company expects higher levels of medical costs to continue for the full year of 2024. As a result, Humana announced that it expects adjusted earnings per share for 2024 of just $16 per share (one $10 per share decline from 2023 and well below analysts’ expectations of $29 per share).

Following this news, Humana’s share price fell by further $47.04 per share, or almost 12%, and closed at $355.36 per share on January 25, 2024.

Pomerantz LLP, with offices in new York, Chicago, Los Angeles, London, ParisAnd Tel-Avivis considered one of the leading law firms in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. PomerantzKnown as the dean of class action lawyers, Pomerantz was a pioneer in the field of securities class action litigation. Today, more than 85 years later, Pomerantz continues the tradition he established and fights for the rights of securities litigation victims. FraudBreach of fiduciary duty and corporate misconduct. The firm has won billions of dollars in damages on behalf of class action plaintiffs. See www.pomlaw.com.

Attorney advertising. Past results do not guarantee similar results.

CONTACT:
Danielle Peyton
Pomerantz LLP
(email protected)
646-581-9980 extension 7980

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