Centene, Facing $1 Billion in Fraud Exposure, Sued by Investor

A Centene Corp. investor sued it in Delaware on Tuesday, seeking to determine how much blame the company’s leaders bear for its exposure to more than $1 billion in potential Medicaid fraud liability.

The lawsuit stems from Centene’s decision to set aside $1.1 billion—allegedly equal to half of its 2020 profits—to cover future anticipated settlements with state attorneys general, after resolving fraudulent billing charges in four states for a combined $215 million.

Those deals with state AGs in Ohio, Illinois, Mississippi, and Arkansas—along with media reports indicating “as many as 20 states” may be engaged in similar probes—provide “ample evidence ...