Centene (CNC) Sued as Investors Allege Company Concealed Financial Risks – Hagens Berman
SAN FRANCISCO, Aug. 27, 2025 (GLOBE NEWSWIRE) -- A new securities class-action lawsuit has been filed against healthcare giant Centene Corporation (NYSE: CNC) and its top executives. The lawsuit alleges that Centene provided a misleadingly optimistic view of its business, particularly concerning its health insurance marketplace enrollment. This follows a dramatic stock price collapse that wiped out billions in market value.
Hagens Berman urges Centene investors who suffered substantial losses to submit your losses now.
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: CNC@hbsslaw.com
844-916-0895
Did Centene (CNC) Conceal Enrollment Weakness? Investor Lawsuit Alleges Misleading Narrative
The lawsuit, Lunstrum v. Centene Corporation, seeks to represent investors who purchased Centene securities between December 12, 2024, and June 30, 2025. The complaint alleges that throughout the class period, Centene projected a strong outlook based on robust enrollment and favorable morbidity (health) rates among its members. This narrative, the lawsuit claims, was at odds with the company's internal data.
The truth came to light on July 1, 2025, when Centene abruptly withdrew its 2025 financial guidance. The company cited a review by an independent actuarial firm, which revealed that market growth in its Health Insurance Marketplace states was "lower than expected" and morbidity levels were "materially inconsistent with" earlier assumptions. The market reacted swiftly, sending the stock tumbling more than 40% in a single day.
On July 25, 2025, after the lawsuit was filed, Centene reported a second-quarter diluted loss per share of -$0.51, which it attributed directly to the reduced revenue estimate.
Hagens Berman’s Investigation
Hagens Berman, a national plaintiffs’ rights law firm, is actively investigating these claims. The firm is examining whether Centene misrepresented the true health of its marketplace business and the extent to which investors were harmed.
“The core of this lawsuit is the alleged disconnect between Centene’s public optimism and the internal data about its most critical business segment,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
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 CNC@hbsslaw.com.
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
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