NEW YORK, Sept. 19, 2006 (PRIMEZONE) -- Roy Jacobs & Associates previously commenced a class action lawsuit for violation of the federal securities laws in the United States District Court for the Eastern District of Missouri on behalf of purchasers of the common stock of Centene Corp. ("Centene" or the "Company") (NYSE:CNC). We are expanding the class period to start April 25, 2006 and run through July 17, 2006 (the "Class Period"). Defendants include Centene and certain of its top officers and directors.
Remember, until a class is certified, you are not represented by counsel. For further information you may call toll free, 1-800-347-1236, or contact counsel by e-mail by writing to classattorney@pipeline.com.
We plan to add additional allegations to the suit. Here, the Company's Chief Executive, Michael Neidorff was motivated to paint a false rosy picture about Centene's financial performance for the first quarter 2006, which ended March 30, 2006, so he could continue to sell thousands of his owns shares at inflated prices. During the early part of 2006, Neidorff sold approximately 40,000 of his own shares. Unbeknownst to the investing public, Centene, a health care enterprise, incurred greatly increased medical costs in Indiana and Texas in March 2006. However, defendants hid this poor March performance, and delayed booking these greatly increased costs until the second quarter, which ended June 30, 2006. As a result, defendant Neidorff was able to continue to sell his shares at prices in the $25 range, yielding him proceeds in excess of $1 million.
Then on July 18, 2006 defendants shocked the market by announcing that 2006 second quarter results would be far below prior guidance, and results for the remainder of 2006 would not meet guidance as well. The huge shortfall was caused by the additional medical costs incurred by Centene in March, which defendants charged to Centene's second quarter. As a result, Centene shares dropped from $21.04 to $13.44, wiping out millions in shareholder value. Centene shares have never fully recovered.
If you purchased Centene securities during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased Centene stock from April 25, 2006 through July 17, 2006. You are not required to have sold your Centene stock in order to claim damages, or to serve in this role. All motions for appointment as Lead Plaintiff must be filed with the Court no later than October 2, 2006.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca