All weekend law firms have been bringing forward class action lawsuits against Centene for allegedly committing fraud against investors due to pulled guidance reports. Things are not looking good for the company.
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@ev their financial reporting team and IT are a joke. CFO needs to GTFO ASAP. And Sarah London needs to be replaced by a rock star CEO who can save the company from destruction.
@ev I have zero knowledge of what kinds of financial reports they use for AI analytics, but if reports are generated from systems I have seen in use. The systems are broken, wrong, don't align or communicate well with the other systems. I wouldn't trust reports from them. (But I am not in claims, so hopefully it's just my department is not important enough)
But I do wonder if the outside firm ran same systems for the data or where they able to transfer info to a different system to look at data for the analytics.
Or maybe it is a simple as time? The guidance would of been trying to predict the future via the past, but now we have so many months of the "future" and things are just different than they were last year.
It is all over my head, but it is interesting on how and why it has played out like this. Your question is a very good one and got me thinking.
Is it like a missed placed decimal from Office Space?
Morningstar is reporting it https://www.morningstar.com/news/globe-newswire/9496476/centene-corporation-cnc-faces-shareholder-ire-amidst-plummeting-stock-and-lawsuit-over-inflated-guidance-hagens-berman
Does anyone know if they have actuaries on the payroll at this point, given all of their rounds of layoffs. Seems like someone just used artificial intelligence for their modeling/forecasting to have gotten it so very wrong.
@em information is free look at Centene news, there are many articles of evidence
Does anyone have evidence of this?
This is more than an “unexpected drop”
this happens every time there’s an unexpected drop in the stock price and these suits never come to fruition. unlike, say, the PBM settlements, these are an annoyance factor looking for a quick buck.