Molina Healthcare(US:MOH) Globenewswire·2025-10-08 12:31Core Viewpoint - Molina Healthcare, Inc. is facing legal action due to allegations of making materially false and misleading statements regarding its financial outlook and medical cost trends during the specified class period [2][3]. Allegations - Molina reported Q2 2025 adjusted EPS of approximately $5.50, which was below prior expectations, leading to a 10.2% cut in its full-year earnings guidance at the midpoint [3] - The company warned that medical cost pressures would continue through the second half of the year, contributing to a decline in its stock price [3] - On July 23, 2025, Molina announced Q2 GAAP net income of $4.75 per diluted share, an 8% decrease year over year, and further reduced its full-year adjusted earnings expectations to no less than $19.00 per share due to a challenging medical cost trend environment [4] - Following this announcement, Molina's stock fell nearly 17% [4] Financial Guidance Issues - Molina's medical cost trend assumptions were found to be inaccurate [9] - There was a dislocation between premium rates and medical cost trends [9] - Near-term growth was dependent on reduced utilization of behavioral health, pharmacy, and inpatient/outpatient services [9] - Consequently, Molina's FY 2025 guidance was likely to be cut [9]