Molina Healthcare(US:MOH) Businesswireยท2025-10-06 17:34Core Viewpoint - A class action lawsuit has been filed against Molina Healthcare, Inc. for allegedly misleading investors regarding its financial performance and medical cost trends during the specified class period from February 5, 2025, to July 23, 2025 [1][5]. Financial Performance - On July 7, 2025, Molina announced second quarter 2025 adjusted earnings of approximately $5.50 per share, which was below prior expectations due to medical cost pressures across all business lines [3]. - The company cut its full-year 2025 adjusted earnings per share guidance by 10.2%, revising it from at least $24.50 per share to a range of $21.50 to $22.50 [3]. - On July 23, 2025, Molina reported a GAAP net income of $4.75 per diluted share for the second quarter, an 8% decrease year over year, and further reduced its full-year 2025 adjusted earnings guidance to no less than $19.00 per diluted share, representing a 13.6% cut [4]. - The full-year 2025 GAAP net income guidance was cut by 27% to $912 million, attributed to a challenging medical cost trend environment [4]. Stock Market Reaction - Following the July 7 announcement, Molina's stock price fell by $6.97, or 2.9%, closing at $232.61 per share [3]. - After the July 23 announcement, the stock price dropped by $32.03, or 16.84%, closing at $158.22 per share [4]. Allegations in the Lawsuit - The lawsuit alleges that Molina's management made materially false and misleading statements and failed to disclose adverse facts about the company's medical cost trend assumptions and financial guidance [5][6]. - Specific allegations include the failure to disclose the dislocation between premium rates and medical cost trends, and that Molina's near-term growth relied on low utilization of various health services [5].