Centene Corporation (CNC) Securities Class Action Lawsuit Update [August 18, 2025]

Introduction to Centene Corporation (CNC) Securities Class Action Lawsuit

A federal securities class action has been filed against Centene Corporation (NYSE: CNC) on behalf of investors who purchased or otherwise acquired Centene securities between December 12, 2024 and June 30, 2025. 

The complaint alleges that defendants made materially false and misleading statements and/or concealed material adverse facts about Centene’s enrollment and morbidity rates. 

On July 1, 2025, Centene issued a press release withdrawing its 2025 guidance after receiving and analyzing industry data indicating lower-than-expected marketplace growth and higher aggregate market morbidity in key states. Following this disclosure, Centene’s stock price declined significantly. 

Centene Corporation (CNC) Securities Lawsuit Case Details 

• Case Name: Lunstrum v. Centene Corporation, et al. 

• Docket Number: 1:25cv5659 

• Court: U.S. District Court, Southern District of New York 

• Filing Date: July 9, 2025 

Centene Corporation (CNC) Company Profile 

• Headquarters: St. Louis, Missouri 

• Business: Healthcare enterprise providing services to governmentsponsored and commercial healthcare programs, including Medicaid, Medicare, and Health Insurance Marketplace plans. 

• Scope: Served more than 1 in 15 individuals in the United States during the Class Period.

Class Period 

December 12, 2024 – June 30, 2025 
Investors who acquired Centene securities during this period may be included in the putative class.

Allegations in the Centene Corporation (CNC) Securities Lawsuit

According to the complaint: 

• Defendants: Centene Corporation, Sarah M. London (CEO), and Andrew Lynn Asher (CFO). 

• On December 12, 2024, Centene announced 2025 adjusted diluted EPS guidance of greater than $7.25 and premium and service revenue guidance midpoint of $155 billion. London cited improvements in operations and delivery on financial commitments. Asher described stability in earnings power and projected 7.6% revenue growth. 

• On February 4, 2025, Centene increased its 2025 premium and service revenue guidance to $158–$160 billion, citing outperformance in Medicare Advantage, PDP, and Medicaid. The company reiterated adjusted diluted EPS guidance of greater than $7.25. 

• On April 25, 2025, Centene again increased its 2025 premium and service revenue guidance to $164–$166 billion, driven by Marketplace and Medicare Advantage enrollment. The company reiterated adjusted diluted EPS guidance of greater than $7.25. 

• The complaint alleges these statements created a false impression of reliable information supporting the company’s projections, while concealing that marketplace enrollment was lower than anticipated and aggregate market morbidity was higher than assumed. 

The Truth Emerges 

On July 1, 2025, Centene announced it was withdrawing its 2025 GAAP and adjusted diluted EPS guidance. The company disclosed that preliminary analysis of data from 22 of its 29 Marketplace states (representing approximately 72% of membership) indicated lower-than-expected market growth and significantly higher aggregate market morbidity. Centene estimated a reduction of approximately $1.8 billion in net risk adjustment revenue transfer, corresponding to an adjusted diluted EPS impact of approximately $2.75.

Market Reaction 

Following the July 1, 2025 announcement, Centene’s stock price fell from a closing price of $56.65 on July 1, 2025 to $33.78 on July 2, 2025 — a decline of 40.4%.

Next Steps 

• Lead Plaintiff Deadline: September 8, 2025  

• The Court will determine lead plaintiff appointment and appoint lead counsel  

• The court will then rule on class certification 

• A motion to dismiss is likely to follow class certification 

To learn if you are eligible for recovery under the CNC securities class action lawsuit, visit the case submission page here. 

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.