Centene Just Got Hit With a Lawsuit Over Inflated 2025 Outlook—Here’s What Investors Should Know

Court: S.D. New York

Case: 1:25-cv-05659

Centene CNC is facing a lawsuit from investors who say the company misled them about its 2025 earnings potential. The case centers on claims that Centene inflated enrollment numbers, underestimated patient health risks, and issued overly optimistic financial guidance that wasn’t backed by internal data. On July 1, 2025, when the truth came out, CNC collapsed by 40.4%.

What Went Wrong With Centene’s Forecasts

For months, Centene told investors it was in great shape, reporting strong enrollment, stable patient health, and promising marketplace growth. The company raised its full-year guidance more than once and projected earnings of over $7.25 per share for 2025.

Then, on July 1, 2025, Centene suddenly withdrew its full-year guidance and admitted it had overestimated its revenue by $1.8 billion due to a miscalculation in its marketplace risk adjustment. The hit affected 72% of its ACA membership. Following this announcement, the stock plunged by 40%.

Investors Push Back—And File Suit

In the wake of the collapse, investors filed a class action lawsuit, accusing Centene of misleading the market to keep its stock price high. They say the company misrepresented the health of its insurance business and ignored internal warnings.

What Can You Do Now?

Now, if you invested in CNC between December 2024 and July 2025, you can join the case to stay updated with news and possible recovery. You can also apply to be a lead plaintiff until September 08, 2025.