On March 24, 2016, Centene announced its acquisition of a health care insurance provider, Health Net, Inc. Following the acquisition of Health Net, Centene guaranteed investors that there had been no negative developments in the Health Net medical reserves. On July 26, 2016, the Company said that, "we did increase reserves for medical claims primarily associated with disputed substance abuse treatment center costs. Additionally, we recorded premium deficiency reserves primarily associated with Arizona and the California individual PPO business." Following this news, Centene stock dropped close to 9%, to close at just $68.87 on July 26, 2016.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements about the recent acquisition of Health Net and failed to disclose that material adverse facts about Centene'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. Specifically, the Complaint alleges that Defendants failed to inform investors (1) that some of Health Net's insurance programs were failing; (2) that Health Net's insurance plans were producing substantial losses; (3) that the Company had overstated Health Net's financial predictions; and (4) consequently, Defendants' statements about Centene's business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/cnc or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Centene you have until January 17, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
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SOURCE Bronstein, Gewirtz & Grossman, LLC