Centene Investor Sues After Record Stock Drop, Pulled Forecast

Health insurer Centene Corp.'s shares plummeted after it withdrew an overhyped 2025 earnings guidance on underestimated costs in its Affordable Care Act plans, a proposed class action filed Wednesday said.

Share prices plunged more than 40% on July 2, the day after it withdrew the forecast, according to a complaint filed in the US District Court for the Southern District of New York. It was the stock’s biggest one-day tumble since its initial public offering in 2001, according to data compiled by Bloomberg.

Centene’s not the only insurer that’s noted earnings hits this year, as the industry contends with rising ...