Robbins Umeda LLP Announces an Investigation of Centene Corporation
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Centene Corporation (NYSE: CNC). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP is investigating whether officers and directors of Centene breached their fiduciary duties to shareholders by causing the company to incorrectly report guidance and issue materially false and misleading statements related to Centene’s business prospects and operations. On June 11, 2012, Centene issued a press release acknowledging that the company was forced to cut its full-year revenue and profit forecasts due to “[h]igher than anticipated medical costs.” Centene also disclosed to investors that the company revised downward its 2012 fiscal guidance to $1.45 to $1.65 per diluted share, far below previously announced guidance of $2.64 to $2.84 per diluted share. On this news, shares of Centene’s common stock declined by more than 22% of their value, closing on June 11, 2012 at just $27.58 per share.
The firm is also examining allegations that certain insiders at the company capitalized on nonpublic adverse facts about Centene’s true business condition. Prior to the company’s June 11, 2012 announcement, several Centene officers and directors reportedly sold over 374,000 shares of Centene common stock for gross proceeds of nearly $18 million. These insider sales occurred while those officers and directors were allegedly in possession of adverse material information that Centene was performing well below expectation. Since these facts have emerged, the company has increasingly become the focus of costly public scrutiny, while deficient financial controls continue to threaten Centene’s reputation and intrinsic value for shareholders.
Robbins Umeda LLP highlights that Centene shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.