Health Care Co. Hid $1B Tax Debt Before Merger: Investors

Law360 (December 17, 2018, 5:05 PM EST) -- A pair of pension funds investing in health care company Centene sued the company Friday, claiming it concealed financial problems with its $6.8 billion acquisition of Health Net, including Health Net’s liability for over $1 billion in California taxes.

This resulted in millions of dollars in damages to Centene shareholders after the company overpaid for Health Net, and “serious harm” to Centene’s reputation, plaintiffs Carpenters Pension Fund of Illinois and Iron Workers Local 11 Pension Fund claimed in their stockholder derivative suit.

Centene purchased Health Net for $78.59 per share of its stock in 2016. The failure of its officers to...

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