Israel Sanchez v. Centene Corp
|Court:||United States District Court for the Eastern District of Missouri|
|Judge:||Hon. Audrey G. Fleissig|
|Class Period:||04/26/2016 - 07/25/2016|
Securities fraud class action filed on behalf of all purchasers of Centene Corporation common stock between April 26, 2016 and July 25, 2016, inclusive (the “Class Period”), alleging claims pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against Centene and two of its top officers, Michael Neidorff (its CEO and Board Chairman) and Jeffrey Schwaneke (its CFO).
The case commenced on November 14, 2016. On May 1, 2017, the Court appointed Louisiana Sheriffs’ Pension & Relief Fund as Lead Plaintiff for the Class and BLB&G as Lead Counsel. On July 17, 2017, Lead Plaintiff filed the operative Complaint on behalf of purchasers of Centene common stock between April 26, 2016 and July 25, 2016.
The Complaint alleges that Centene and certain of its top officers made false and misleading statements to investors, and omitted material facts, regarding the financial condition and liabilities of Health Net, Inc., which Centene acquired shortly before the Class Period. When the truth emerged, the price of Centene’s common stock plunged, erasing over $1 billion in market capitalization.
On September 15, 2017, Defendants filed a motion to dismiss the Complaint, which Plaintiffs opposed. On August 30, 2019, the Court denied in part and granted in part the Defendants’ motion to dismiss, reducing the Class Period by approximately one month.