According to the law firm press release, on March 24, 2016, the Company completed the acquisition of Health Net, Inc. (“Health Net”) for approximately $6 billion, including the assumption of debt. The acquisition was accounted for as a business combination, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date.
The complaint filed in this action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements concerning the recent acquisition of Health Net as well as failed to disclose material adverse facts about the Company’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. The complaint further alleges that Defendants failed to inform investors (1) that certain Health Net insurance programs were significantly underperforming; (2) that Health Net’s insurance plans were generating material losses; (3) that Centene had overstated Health Net’s financial prospects; and (4) that, as a result of the foregoing, Defendants’ statements about Centene’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
This case was transferred to the Eastern District of Missouri on March 1, 2017. Plaintiffs filed an amended Complaint on July 17. On September 15, Defendants filed a Motion to Dismiss the amended Complaint. On August 30, 2019, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.
On March 5, 2020, the parties entered into a Stipulation and Agreement of Settlement. The Court granted preliminary approval of the Settlement on June 23.