Centene Corporation (CNC) Faces Shareholder Ire Amidst Plummeting Stock and Lawsuit Over 'Inflated Guidance'
The company, a prominent provider of government-sponsored and commercial healthcare services, finds itself embroiled in a class action lawsuit following a dramatic plunge in its stock price. The suit, Lunstrum v. Centene Corporation, No. 25-cv-05659 (S.D.N.Y.), seeks to represent investors who purchased or acquired Centene securities between December 12, 2024, and June 30, 2025, alleging violations of the Securities Exchange Act of 1934.
National shareholders rights firm Hagens Berman continues to investigate the securities law claims and urges Centene investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
Class Period: Dec. 12, 2024 – June 30, 2025
Lead Plaintiff Deadline: Sept. 8, 2025
Visit: www.hbsslaw.com/investor-fraud/cnc
Contact the Firm Now: [email protected]
844-916-0895
Centene Q2 2025 Financial Results
On July 25, 2025, Centene reported a GAAP diluted loss per share of -$0.51 'driven primarily by a reduction in the Company's net 2025 Marketplace risk adjustment revenue transfer estimate.'
The Centene Securities Class Action
Centene Corporation and its top executives are facing a class-action lawsuit accusing them of portraying an overly optimistic view of the company's financial health and future prospects, misleading investors about its enrollment and market conditions. According to the complaint, during the alleged Class Period, Centene's leadership gave the impression that it had solid, reliable information about projected revenue growth while touting strong enrollment rates and low morbidity levels among its members.
For months, Centene's public statements painted a picture of expanding market share and a robust business, particularly focused on serving underinsured and uninsured populations. Yet, the lawsuit alleges that these upbeat reports were disconnected from reality. A preliminary analysis covering more than two-thirds of Centene's Marketplace share reportedly showed lower-than-expected enrollment alongside higher aggregate morbidity rates. This disparity between official statements and internal data forms the core grievance of shareholders.
The situation reached a critical point on July 1, 2025, when Centene abruptly withdrew its 2025 financial guidance. The company cited a thorough review of Marketplace data from independent actuarial firm Wakely, revealing that market growth across Centene's 22 Health Insurance Marketplace states was 'lower than expected,' with morbidity levels significantly exceeding and 'materially inconsistent with' the company's earlier assumptions for risk adjustment revenue transfer used in its 2025 guidance. This unexpected revision led to the elimination of Centene's guidance, sending its stock tumbling more than 40 percent and wiping out billions in shareholder value overnight.
The lawsuit contends that investors were misled by a narrative of sustained growth and healthy enrollment that, in truth, did not reflect the company's operational realities.
'The allegations, if proven true, suggest a pattern of where Centene's public optimism didn't align with the internal metrics, ultimately leaving investors holding the bag,' stated Reed Kathrein, a partner at Hagens Berman.
If you invested in Centene and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Centene investigation, read more »
Whistleblowers: Persons with non-public information regarding Centene should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same.
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