Centene (CNC) Sued as Investors Allege Company Concealed Financial Risks

Core Viewpoint - A securities class-action lawsuit has been filed against Centene Corporation, alleging that the company misrepresented its business outlook, particularly regarding health insurance marketplace enrollment, leading to a significant stock price decline [1][2]. Group 1: Lawsuit Details - The lawsuit, titled Lunstrum v. Centene Corporation, seeks to represent investors who purchased Centene securities between December 12, 2024, and June 30, 2025 [2]. - The complaint claims that Centene projected a strong outlook based on robust enrollment and favorable morbidity rates, which contradicted the company's internal data [2][5]. - The lawsuit was prompted by Centene's withdrawal of its 2025 financial guidance on July 1, 2025, after an independent actuarial review indicated lower-than-expected market growth and inconsistent morbidity levels [3]. Group 2: Financial Impact - Following the revelation of the misleading information, Centene's stock price fell more than 40% in a single day [3]. - On July 25, 2025, Centene reported a second-quarter diluted loss per share of -$0.51, attributing this loss to reduced revenue estimates [4]. Group 3: Investigation and Legal Representation - Hagens Berman, a national plaintiffs' rights law firm, is investigating the claims against Centene to determine if the company misrepresented the health of its marketplace business [5]. - The firm emphasizes the alleged disconnect between Centene's public optimism and its internal data regarding its critical business segment [5].