According to a press release issued June 29, 2012, Centene operates as a multiline healthcare company in the United States. On June 11, 2012, the Company's stock price plunged over 22% after the Company cut its full-year profit and revenue forecasts due to higher-than-expected medical costs. Centene revised its projections to earnings of $1.45 to $1.65 per share for 2012 versus a previous forecast of $2.64 to $2.84 per share. In addition, the Company also disclosed that expenses were above projections for commercial polices sold by its Celtic Insurance unit and Centene was evaluating goodwill and intangible assets at the unit that may result in a non-cash charge of about $28 million.
The complaint alleges that Centene misrepresented its financial condition and failed to inform investors that the Company's 2012 outlook, provided at the start of the Class Period, lacked a reasonable basis when made due to already existing and understood competitive pressures.
According to the notice entered into the Court's docket on September 21, 2012, Plaintiff voluntarily dismissed this action without prejudice as to all claims an d Defendants.