Centene Board Beats Pension Fund’s $1.3 Billion Investor Lawsuit

Centene Corp. board members prevailed in court Friday against a pension fund lawsuit blaming them for a Medicaid fraud scandal that may cost the insurance giant up to $1.25 billion.

A Delaware judge threw out the shareholder case, rejecting allegations that the company’s current and former directors looked the other way while it systematically inflated bills to state health agencies. Centene—the top provider of Medicaid health plans—has already paid nearly $600 million to resolve fraud claims by 13 states.

“The board oversaw improvements to Centene’s Medicaid compliance systems for as long as it was aware of the deficiencies,” Vice Chancellor ...