Molina Healthcare(US:MOH) Globenewswireยท2025-10-04 00:25Core Viewpoint - The Molina Healthcare class action lawsuit alleges that the company and its executives violated the Securities Exchange Act of 1934 by failing to disclose critical information regarding financial performance and medical cost trends during the specified class period [1][3]. Group 1: Lawsuit Details - The class action lawsuit seeks to represent purchasers or acquirers of Molina Healthcare securities from February 5, 2025, to July 23, 2025 [1]. - The lawsuit is titled Hindlemann v. Molina Healthcare, Inc., No. 25-cv-09461 (C.D. Cal.) [1]. - Allegations include failure to disclose adverse facts about medical cost trend assumptions and a dislocation between premium rates and medical costs [3]. Group 2: Financial Performance - On July 7, 2025, Molina Healthcare reported adjusted earnings of approximately $5.50 per share, which was below prior expectations due to medical cost pressures [4]. - The company cut its guidance for expected adjusted earnings per share by 10.2% at the midpoint, citing ongoing medical cost pressures [4]. - On July 23, 2025, Molina Healthcare reported GAAP net income of $4.75 per diluted share for Q2 2025, an 8% decrease year over year, and revised its full-year 2025 adjusted earnings expectation to no less than $19.00 per diluted share [5]. Group 3: Market Reaction - Following the earnings report on July 7, 2025, Molina Healthcare's stock price fell significantly, reflecting investor concerns over the disclosed medical cost pressures [4]. - After the July 23, 2025 report, the stock price dropped nearly 17%, indicating a strong negative market reaction to the revised earnings guidance [5].