Centene Corp (NYSE:CNC) Investor Files Class Action Lawsuit Over Alleged Securities Law Violations
September 24, 2012 (Update) -- The plaintiff voluntarily dismissed the action without prejudice as to all claims and defendants.
July 2, 2012 (Shareholders Foundation) -- An investor in NYSE:CNC shares filed a lawsuit in the U.S. District Court for the Eastern District of Missouri against Centene Corp over alleged Violations of Federal Securities Laws in connection with certain financial statements.
According to the complaint the plaintiff alleges on behalf of all investors who purchased Centene Corp (NYSE:CNC) common stock during the period from February 7, 2012 through June 8, 2012, that Centene Corp violated the Securitites Exchange Act of 1934. Specifically, the plaintiff alleges that Centene Corp allegedly misrepresented its financial condition and allegedly failed to inform investors that its 2012 outlook, provided at the in early 2012 lacked a reasonable basis when made due to already existing and understood competitive pressures.
Centene Corp (NYSE:CNC) reported that its annual Revenue increased from $3.27billion in 2008 to $5.18billion in 2011 and its Net Income rose from $83.50million to $111.22million in 2011.
Shares of Centene Corp (NYSE:CNC) rose from as low as $13.69 per share in April 2008 to as high as $50.80 per share on April 5, 2012.
However, then on June 11, 2012, Centene Corporation (NYSE: CNC) announced that it is revising its 2012 guidance to $1.45 to $1.65 per diluted share, from the previously announced range of $2.64 to $2.84 per diluted share. Centene Corporation said the revised guidance range reflects negative financial results in May for its Kentucky Health Plan and the Hidalgo service area in its Texas Health Plan, as well as in the Celtic individual health business.
NYSE:CNC shares fell from $35.48 per share on June 8, 2012 to $24.73 per share on June 11, 2012.
NYSE:CNC shares closed on July 2, 2012, at $29.89 per share.