Robbins Arroyo LLP: Centene Corporation (CNC) Misled Shareholders According to a Recently Filed Class Action
November 23 2016 - 02:18PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Centene Corporation (NYSE:
CNC) in the U.S. District Court for the Central District of
California. The complaint is brought on behalf of all purchasers of
Centene securities between April 26, 2016 and September 6, 2016,
for alleged violations of the Securities Exchange Act of 1934 by
Centene's officers and directors. Centene operates as a diversified
and multi-national healthcare enterprise that provides programs and
services to under-insured and uninsured individuals in the United
States.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/centene-corporation-nov-2016
Centene Accused of Issuing Inaccurate Financial
Information
According to the complaint, on March 24, 2016, Centene acquired
Health Net, Inc. ("Health Net") for approximately $6 billion,
including the assumption of debt. In a press release on April 26,
2016, Centene stated, "This acquisition is transformational –
building on our critical mass and new products and capabilities
that will enhance the sustainability of our long-term growth." On
May 10, 2016, Centene provided financial information concerning the
completed acquisition that allegedly incorrectly accounted for
Health Net's underperforming health plans, including by
understating certain reserves to account for losses in California,
Arizona, and Oregon.
The complaint further alleges that Centene officials failed to
disclose: (1) that certain Health Net insurance programs were
significantly underperforming; (2) that Health Net's insurance
plans were generating material losses; and (3) that Centene had
overstated Health Net's financial prospects. On July 26, 2016,
Centene filed a report with the U.S. Securities and Exchange
Commission on Form 8-K, stating that it was reserving approximately
$300 million for losses associated with Health Net's insurance
plan. Then, on September 6, 2016, Leerink Partners, LLC issued a
report downgrading Centene stock due to underperformance of the
Health Net legacy insurance programs, including Health Net's
California substance abuse programs. On this news, Centene's stock
fell $3.32 per share, or 5%, to close at $65.30 per share on
September 6, 2016.
Centene Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161123005678/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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