The U.S. Department of Justice and three U.S. states filed a lawsuit on Tuesday to block UnitedHealth Group's $3.3 billion acquisition of Amedisys Inc , citing concerns that the deal would reduce competition in the home health services market.

The Justice Department and four Democratic state attorneys general argued that United’s takeover would limit competition and harm consumers needing home or hospice care.

UnitedHealth is seeking to add Amedisys to Optum, its subsidiary that provides care as well as pharmacy and technology services.

The Justice Department and four Attorneys General have blocked UnitedHealth Group Incorporated’s $3.3 billion acquisition of Amedisys Inc. The Attorneys General of Maryland, Illinois, New Jersey, and New York joined the blockade alongside the legal watchdog of the United States government,

UnitedHealth Group's $3.3 billion acquisition of Amedisys, the largest M&A deal for a Minnesota company in 2023, is being targeted by antitrust regulators who say the merger would hurt competition in the home health care sector.