Centene Corporation (CNC) Faces Shareholder Ire Amidst Plummeting Stock and Lawsuit Over "Inflated Guidance" - Hagens Berman

SAN FRANCISCO, July 15, 2025 /PRNewswire/ -- Healthcare giant Centene Corporation (NYSE: CNC), 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: CNC@hbsslaw.com
                                     844-916-0895

The Centene Securities Class Action:

At the heart of the legal challenge are accusations that Centene and its top executives presented an overly rosy picture of the company's financial health and future prospects. According to the complaint, throughout the specified "Class Period," defendants allegedly "created the false impression that they possessed reliable information pertaining to [Centene's] projected revenue outlook and anticipated growth while also touting enrollment rates and low morbidity."

For months, Centene's public statements painted a vibrant landscape of expanding market share and robust health, particularly within its focus on underinsured and uninsured individuals. However, the lawsuit contends that these "optimistic reports and promises regarding [Centene's] inflated guidance fell short of reality." A preliminary analysis, encompassing over two-thirds of Centene's marketplace share, reportedly revealed "lower-than-anticipated enrollment and increased aggregate market morbidity." This stark contrast between public pronouncements and internal realities forms the crux of the shareholders' grievance.

The alleged misrepresentations came to a head on July 1, 2025, when Centene publicly withdrew its 2025 guidance. The company's announcement, following a comprehensive analysis of the 2025 Health Insurance Marketplace, conceded that its overall market growth across 22 states—representing a significant 72% of Centene's marketplace membership—was "lower than expected." This sobering assessment led to a substantial reduction in its previously issued guidance, slashing it to approximately $1.8 billion or an adjusted diluted EPS of $2.75.

The market's reaction was swift and brutal. On the heels of this disclosure, the price of Centene stock plummeted by more than 40%, wiping out billions in shareholder value and igniting the current legal battle. The lawsuit alleges that investors were misled by a narrative of sustained growth and healthy enrollment that did not align with the underlying operational performance.

Hagens Berman's Investigation

Leading plaintiffs' firm Hagens Berman has announced its own investigation into the company's alleged misconduct. "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 case and our 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. 

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SOURCE Hagens Berman Sobol Shapiro LLP