Federal Contractor Misconduct Database (FCMD)
Sanchez v. Centene Corp. (Health Net Acquisition Class Action)
Centene Corp. paid $7.5 million to settle a putative class action alleging it lied to investors about the financial well-being of Health Net before acquiring the company in a $6.8 billion merger in 2016. Centene claimed the merger would expand its services into new markets and add to its business. But after the deal was closed, Centene disclosed that it had incurred $390 million in liabilities, more than what the company had previously reported. The plaintiffs claimed Centene hid from them that Health Net had experienced dramatic increases in claims for substance abuse care in California in 2014 and 2015, causing its liabilities to rise and its profitability to fall.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement Announcement