Humana Board Sued Over Projections of Post-Covid Insurance Use

Humana Inc.'s directors and two executives are responsible for falsely reassuring investors about trends in health insurance as the US emerged from the Covid-19 pandemic, an investor alleges.

The insurer failed to disclose pent-up demand for medical services, which resulted in higher business costs, according to the derivative suit Monday in the US District Court for the Western District of Kentucky.

A series of jolts to the company’s stock price followed reports, starting in June 2023, of higher utilization trends at competitor UnitedHealth Group Inc. and Humana, shareholder Nathan Silva says.

Humana has been harmed by the need to defend ...