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Investing.com -- Shares of UnitedHealth Group (NYSE:UNH) are down more than 7% in premarket trading on Thursday after it was reported that the U.S. Department of Justice is conducting a criminal investigation into the company’s Medicare business. 

The Wall Street Journal reported, citing sources,  that the Justice Department has been investigating UnitedHealth since last summer for possible Medicare fraud.

The probe has raised broader concerns on Wall Street, with Mizuho warning that UnitedHealth’s volatility and steep market value losses could lead to its removal from the Dow Jones Industrial Average.

“Given recent price action of UNH shares, losing more than $300bn of its $600bn market-cap in just one month, we believe there is some risk that the name is removed from the Dow,” Mizuho analysts wrote in a note Thursday. 

They cited the index’s tendency to exclude companies that exhibit “heightened volatility” or have become “less relevant as major examples of the economy.”

Recent high-profile removals from the Dow include Intel (NASDAQ:INTC), Dow Inc (NYSE:DOW)., ExxonMobil (NYSE:XOM), and Pfizer (NYSE:PFE).

Mizuho noted that while the full implications of the DOJ investigation remain unclear, the uncertainty could have financial and management consequences.

“The DOJ investigation itself… introduces a period of less clarity and may produce financial penalties/ramifications as well,” they wrote.

Despite the legal overhang, Mizuho pointed to some longer-term positives. The firm highlighted that UnitedHealth still expects earnings to grow in fiscal 2026, helped by improved cost trends and stronger Medicare Advantage rates.

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