Case Background:
This is a federal securities fraud class action lawsuit behalf of those who purchased or otherwise acquired Humana Inc. (“Humana”) (NYSE: HUM) common stock or call options, or sold put options, between July 27, 2022 and October 1, 2024, inclusive (the “Class Period”).
Humana is an insurance and healthcare company that focuses primarily on administering Medicare Advantage programs, which provide health insurance to seniors over the age of 65 and those under 65 with particular disabilities. In addition to deriving revenue from the U.S. Centers for Medicare & Medicaid Services (“CMS”), which oversees Medicare Advantage, Humana also generates significant revenue in the form of bonus payments and rebates tied to its Star ratings. The Star ratings system is CMS’s comprehensive quality evaluation system for Medicare Advantage plans
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business and operations. Specifically, Defendants misrepresented and/or failed to disclose that: (1) Humana downplayed pressures on the company’s adjusted earnings per share resulting from increased medical costs associated with pent-up demand for healthcare procedures (especially as COVID concerns abated) which, contrary to Humana’s assurances, resulted in increased utilization rates and costs; (2) Defendants actively concealed the company’s increased Medicare Advantage utilization through improper denials of claims for medical services and aggressive prior authorization practices; (3) at the same time, Defendants undertook a series of destructive cost-cutting measures and headcount reductions, which led to declines in the quality of Humana’s Medicare Advantage benefit plans, and ultimately, its Star ratings by weakening the departments responsible for ensuring that Humana’s members had access to high quality, accessible, and efficient healthcare; and (4) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On April 27, 2026, the Court granted in part and denied in part Defendants' Motion to Dismiss the Amended Complaint. This action is now in the discovery phase and is ongoing.
For more information on the case and the Court's Motion to Dismiss Order, please visit our website at www.ktmc.com/featured-case/humana-inc.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.