Core Viewpoint - A lawsuit has been filed against Centene Corporation and certain senior executives for potential violations of federal securities laws, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [1][2]. Company Overview - Centene Corporation is a healthcare company that provides services to consumers enrolled in government-sponsored healthcare programs such as Medicaid and Medicare, as well as those purchasing insurance under the Affordable Care Act [3]. Financial Guidance and Performance - On December 12, 2024, Centene announced financial guidance for fiscal year 2025, claiming stability in earnings despite challenges [4]. - The company increased its 2025 guidance on February 4, 2025, citing enrollment overperformance, and again on April 25, 2025, due to strong growth in enrollment and retention [4]. - However, the actual market conditions showed lower than expected enrollment growth and increased morbidity rates in the majority of the states served by Centene [4]. Stock Market Reaction - On July 1, 2025, Centene withdrew its previous guidance after an independent actuarial report revealed lower than expected market growth and higher morbidity rates, leading to a significant stock price drop of $22.87 per share, or over 40%, from $56.65 to $33.78 [5].

Core Viewpoint - A lawsuit has been filed against Centene Corporation and its senior executives for potential violations of federal securities laws, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [1][2]. Group 1: Company Overview - Centene Corporation is a healthcare company that provides services to consumers enrolled in government-sponsored healthcare programs such as Medicaid and Medicare, as well as those purchasing insurance under the Affordable Care Act [3]. Group 2: Financial Guidance and Performance - On December 12, 2024, Centene announced financial guidance for fiscal year 2025, claiming stability in earnings despite challenges [4]. - The company increased its 2025 guidance on February 4, 2025, citing enrollment overperformance, and again on April 25, 2025, due to strong growth in enrollment and retention [4]. - However, the actual market conditions showed lower than expected enrollment growth and increased morbidity rates in the majority of the states Centene serves [4]. Group 3: Stock Performance and Market Reaction - On July 1, 2025, Centene withdrew its previous guidance after an independent actuarial report revealed lower than expected market growth and higher morbidity rates [5]. - Following this news, Centene's stock price fell by $22.87 per share, a decline of over 40%, from $56.65 on July 1, 2025, to $33.78 on July 2, 2025 [5].

NEW YORK, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Centene Corporation ("Centene" or the "Company") (NYSE: CNC) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Centene investors who were adversely affected by alleged securities fraud between December 12, 2024 and June 30, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/centene-corporation-lawsuit ...

Core Viewpoint - Centene Corporation is facing a class action lawsuit due to allegations of providing misleading statements regarding its enrollment and morbidity rates, which led to a significant decline in its stock price after the withdrawal of its 2025 guidance [2][3]. Group 1: Allegations and Impact - Defendants allegedly made overwhelmingly positive statements while concealing adverse facts about Centene's true enrollment and morbidity rates [2] - On July 1, 2025, Centene withdrew its 2025 guidance, revealing that its market growth across 22 states was lower than expected, leading to a revised guidance of approximately $1.8 billion and an adjusted diluted EPS of $2.75 [2] - Following this announcement, Centene's stock price plummeted from $56.65 per share to $33.78 per share, marking a decline of 40.4% [3] Group 2: Legal Proceedings - The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [4] - Any member of the putative class can move to serve as lead plaintiff or choose to remain an absent class member without affecting their ability to share in any recovery [4] Group 3: Call for Information - Faruqi & Faruqi, LLP is encouraging individuals with information regarding Centene's conduct, including whistleblowers and former employees, to come forward [5]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Centene Corporation securities between December 12, 2024, and June 30, 2025, of the September 8, 2025, deadline to become lead plaintiffs in a class action lawsuit [1] Group 1: Class Action Details - Investors who bought Centene securities during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1] - A class action lawsuit has already been filed, and interested parties must move the Court by September 8, 2025, to serve as lead plaintiff [2] - The lawsuit alleges that Centene's management provided misleading information regarding the company's revenue guidance and earnings per share for the 2025 fiscal year, while concealing adverse facts about enrollment and morbidity rates [4] Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in this area [3] - The firm has secured significant settlements for investors, including over $438 million in 2019 and has been ranked highly for its performance in securities class action settlements [3]

Core Insights - Centene Corporation (CNC) faces both opportunities and challenges under the One Big Beautiful Bill Act (OBBBA), which aims to simplify and digitize the U.S. healthcare payment system [1][3] - The bill includes approximately $1 trillion in federal Medicaid cuts over the next decade and mandates eligibility verification every six months, potentially increasing administrative costs and affecting ACA plan enrollment [2][8] Group 1: Opportunities and Challenges - The emphasis on billing standardization and digital infrastructure in the OBBBA may benefit Centene, allowing for enhanced claims accuracy and improved cash flow [3][4] - Centene's nationwide presence and experience in navigating complex regulations provide a competitive edge, enabling the company to develop tailored products and expand into private markets [4] Group 2: Financial Performance and Estimates - Centene's shares have lost 57.6% year to date, underperforming the industry [7] - The Zacks Consensus Estimate for CNC's EPS has been revised downward for the second and third quarters of 2025, with a similar trend for full-year estimates [10][11] - Current estimates indicate a year-over-year revenue increase for 2025, but a decline in EPS, while the opposite is expected for 2026 [11] Group 3: Valuation and Market Position - Centene trades at a forward 12-month price-to-earnings ratio of 8.98, below the industry average of 11.96 [9] - The company may face pressure from the $1 trillion in Medicaid cuts and potential increases in costs due to eligibility checks [8]

Core Viewpoint - A lawsuit has been filed against Centene Corporation and its senior executives for potential violations of federal securities laws, following significant discrepancies between the company's financial guidance and actual market conditions [1][2]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Southern District of New York, specifically titled Lunstrum v. Centene Corporation, et al., No. 25-cv-05659 [2]. - Investors have until September 8, 2025, to request to be appointed to lead the case [2]. Group 2: Company Background - Centene Corporation is a healthcare company that provides services to consumers enrolled in government-sponsored healthcare programs such as Medicaid and Medicare, as well as those purchasing insurance under the Affordable Care Act [3]. Group 3: Financial Guidance and Market Conditions - On December 12, 2024, Centene announced financial guidance for fiscal year 2025, claiming stability in earnings despite challenges [4]. - The company subsequently increased its 2025 guidance on February 4, 2025, citing enrollment overperformance, and again on April 25, 2025, due to strong growth in enrollment and retention [4]. - However, the actual market conditions revealed lower than expected enrollment growth and increased morbidity rates in the majority of the states served by Centene [4]. Group 4: Stock Performance - On July 1, 2025, Centene withdrew its previous guidance after an independent actuarial report indicated that market growth in 22 of the 29 states was lower than expected, leading to a significant stock price drop of $22.87 per share, or over 40%, from $56.65 to $33.78 [5].

Core Viewpoint - Centene Corporation is facing a class action lawsuit due to allegations of misleading investors regarding its revenue outlook and growth prospects during the specified Class Period from December 12, 2024, to June 30, 2025 [1][4]. Company Overview - Centene Corporation is a healthcare enterprise that provides integrated services to government-sponsored and commercial healthcare programs, focusing on underinsured and uninsured individuals [3]. Allegations and Misleading Information - The lawsuit claims that Centene misled investors by presenting a false impression of reliable information concerning its projected revenue and growth, emphasizing strong enrollment rates and low morbidity levels [4]. - Contrary to these claims, the complaint alleges that there were adverse enrollment trends and worsening morbidity rates that were concealed from investors [5]. Financial Guidance and Market Performance - On July 1, 2025, Centene withdrew its 2025 guidance, revealing disappointing findings from its analysis of the Health Insurance Marketplace, with market growth across 22 states being significantly below expectations [6]. - The revised guidance indicated earnings of approximately $1.8 billion, translating to an adjusted diluted EPS of $2.75 [6]. Stock Price Impact - Following the announcement of the revised guidance, Centene's stock price dropped by over 40%, resulting in substantial financial losses for investors and leading to the current class action litigation [7].

Core Insights - Centene Corporation (CNC) has experienced a significant decline in share price, losing 56.8% year to date, underperforming compared to its industry, sector, and the Zacks S&P 500 composite [2][3] - The company reported its first quarterly loss in over a decade in Q2 2025, driven by elevated healthcare utilization and medical cost pressures, with a health benefits ratio (HBR) reaching 93% [3][11] - Centene's operating costs surged by 27.4% year over year in Q2 2025, totaling $49.2 billion, primarily due to rising medical, tax, and administrative expenses [11][13] Company Performance - Centene's stock is currently undervalued, trading at a price-to-earnings multiple of 10.14, lower than the industry average of 11.46 [10] - The company has cut its 2025 earnings per share guidance to $1.75 from over $7.00, reflecting the impact of increased healthcare utilization trends [11][14] - Despite growth in Marketplace membership, revenues were negatively affected by a shortfall in anticipated 2025 risk adjustment transfer payments and high medical utilization rates [15] Market Position - Centene holds a significant market share in government-sponsored healthcare, with operations in Medicaid, Medicare Advantage, ACA Marketplace, and more [18] - The company has expanded its footprint through acquisitions over the past decade, which supports long-term revenue growth [18] - The One Big Beautiful Bill Act (OBBB) is expected to introduce approximately $1 trillion in federal Medicaid cuts over the next decade, impacting Centene's operations [22] Financial Metrics - Centene's return on equity (ROE) for the trailing 12 months was 9.7%, underperforming the industry average of 21.1% [23] - The return on invested capital (ROIC) was 6.7%, also lower than the industry average of 9% [24] - Long-term debt stood at $17.6 billion as of June 30, 2025, exceeding cash and cash equivalents of $14.5 billion [17] Analyst Sentiment - The Zacks Consensus Estimate for 2025 earnings indicates a 70% year-over-year decrease, while the estimate for 2026 suggests a 51% increase [25] - Recent consensus estimates for 2025 and 2026 earnings have decreased by 48.3% and 36.2%, respectively, in the past week [25]

Core Viewpoint - A securities class action lawsuit has been filed against Centene Corporation for allegedly making materially false and misleading statements regarding its business operations and market performance during the specified Class Period from December 12, 2024, to June 30, 2025 [1][2]. Group 1: Allegations Against Centene - The lawsuit claims that Centene's management misrepresented the company's marketplace share, indicating lower-than-expected enrollment and increased market morbidity [2]. - It is alleged that the statements made by Centene's management about the company's business and prospects were materially false and lacked a reasonable basis throughout the Class Period [2]. Group 2: Lead Plaintiff Process - Investors in Centene have until September 8, 2025, to seek appointment as a lead plaintiff, representing the interests of the class in the litigation [3]. - The lead plaintiff is typically the investor or small group of investors with the largest financial interest in the case and who are representative of the class [3]. Group 3: Firm Information - Kessler Topaz Meltzer & Check, LLP is a law firm that prosecutes class actions and has a reputation for recovering billions for victims of corporate misconduct [4]. - The firm encourages Centene investors who have experienced significant losses to contact them for more information regarding the lawsuit [4].