Grabar Law Office has been featured in Law360 in connection with a shareholder derivative action filed on behalf of Humana Inc. (NYSE: HUM).
The action was filed in the Delaware Court of Chancery on behalf of Humana against certain current and former officers and directors of the Company. The complaint asserts claims for breach of fiduciary duty, unjust enrichment, and waste of corporate assets.
According to the complaint, Humana derives a substantial portion of its revenue from its Medicare Advantage business. The complaint alleges, among other things, that certain officers and directors caused or permitted Humana to participate in an unlawful kickback and discriminatory enrollment scheme involving insurance brokers, pursuant to which beneficiaries were allegedly steered to Humana Medicare Advantage plans and enrollment of certain disabled beneficiaries was allegedly discouraged.
The complaint further alleges that Humana failed to adequately disclose rising medical utilization and costs as patients resumed care deferred during the COVID-19 pandemic, while also allegedly undertaking cost-cutting measures that negatively affected plan quality and Medicare Advantage “Star” ratings. Following disclosure of lower Star ratings in October 2024, Humana’s stock price allegedly declined approximately 23.6% over two trading days.
The action also alleges that Humana repurchased approximately 6.9 million shares between November 2022 and July 2024 at allegedly inflated prices, resulting in more than $1.5 billion in alleged corporate waste, and that certain executives realized more than $23 million from allegedly improper insider stock sales.
Law360 reported that the derivative action followed the U.S. Department of Justice’s May 2025 intervention in a False Claims Act action alleging unlawful broker kickbacks and discrimination involving Medicare Advantage beneficiaries, as well as related securities litigation against Humana.
Read the Law360 article: “Humana Brass Face Derivative Suit Alleging Illegal Kickbacks.” Humana Brass Face Derivative Suit Alleging Illegal Kickbacks – Law360
