RM Law announces that a class action lawsuit has been filed in United States District Court for the Central District of California on behalf of all persons or entities that purchased Centene Corporation (NYSE: CNC) (“Centene” or the “Company”) common shares between April 26, 2016 and September 6, 2016, inclusive (the “Class Period”).
Centene shareholders may, no later than January 17, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Centene and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/cnc.
On March 24, 2016, the Company completed the acquisition of Health Net, Inc. (“Health Net”) for approximately $6 billion, including the assumption of debt. The acquisition was accounted for as a business combination, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date.
The Complaint alleges that Defendants made materially false and/or misleading statements concerning the recent acquisition of Health Net as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects, including the underperformance of Health Net legacy insurance programs and the need to increase reserves to offset losses caused by these programs. The complaint further alleges that Defendants failed to inform investors: 1) that certain Health Net insurance programs were significantly underperforming; 2) that Health Net’s insurance plans were generating material losses; 3) that Centene had overstated Health Net’s financial prospects; and 4) that, as a result of the foregoing, Defendants’ statements about Centene’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
If you are a member of the class, you may, no later than January 17, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM Law or other counsel of your choice, to serve as your counsel in this action.