Centene Corporation (CNC) Investigation

Centene promotes itself as a leading healthcare enterprise, which takes a local approach – with local brands and local teams – to provide fully integrated, high quality and cost-effective services to government- sponsored and commercial healthcare programs that focuses on under-insured and uninsured individuals. It offers products to individuals, including Medicare and Medicaid members and to those insured by the Health Insurance Marketplace.

In the past, Centene has assured investors that it uses “actuarial methods that are commonly used by health insurance actuaries and meet Actuarial Standards of Practice.”

On April 25, 2025, Centene increased its 2025 revenue guidance to investors by $6 billion, reiterated its 2025 GAAP diluted EPS guidance floor (greater than $6.19), and reiterated its 2025 adjusted diluted EPS guidance floor (greater than $7.25).

On July 1, 2025, Centene's assurances were called into question when the company abruptly announced it was withdrawing its April 2025 guidance, rather than simply adjusting it downward. This decision stemmed from new information Centene received regarding the Health Insurance Marketplace (Marketplace) data.

The company stated that it had recently analyzed its first view of 2025 industry Marketplace data from Wakely, an independent actuarial firm. This initial data covered 22 of Centene's Marketplace states, representing approximately 72% of its Marketplace membership.

Centene reported that the overall market growth in these 22 states was lower than anticipated. More significantly, the implied market morbidity in those states was considerably higher than, and materially inconsistent with, the company’s assumptions for risk adjustment revenue transfer that were used to prepare its previous 2025 consolidated guidance.

The company's preliminary analysis of these 22 states indicated a reduction in its full-year net risk adjustment revenue transfer expectation by an estimated $1.8 billion, which corresponds to an adjusted diluted EPS impact of approximately $2.75. Furthermore, Centene noted that while it didn't yet have information or estimates for its remaining seven Marketplace states, it anticipated an additional reduction to its net risk adjustment revenue transfer expectation, with a corresponding adjusted diluted EPS impact, due to the morbidity trends observed in the initial 22 states.

In response to these shocking disclosures, the price of historically low-volatility CNC shares cratered 40% (-$22.87) in a single day.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the CNC investigation about?

We are investigating whether Centene may have misled investors about the sufficiency of its actuarial practices.

WHAT SHOULD I DO?

I worked at CNC. What should I do?

If you were an employee of CNC, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in CNC, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any CNC investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.