News of Federal Probe Weighs on Pediatrix

Shares of Pediatrix Medical Group Inc., which runs a network of neonatal physician practices, tumbled by as much as 26% after it said federal prosecutors were investigating its Medicaid billing practices nationwide.

Pediatrix said a U.S. attorney’s office advised the company that it would request documents and information informally or by subpoena within the next few weeks as part of a civil investigation.

The company’s shares fell $9.90 to close at $32.20 on the NYSE after falling as low as $31.30 earlier in the session.