Molina Healthcare(US:MOH) Globenewswire·2025-10-08 13:45Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. due to alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status in a class action set for December 2, 2025 [3]. Group 1: Allegations Against Molina - The complaint alleges that Molina and its executives made false or misleading statements and failed to disclose material adverse facts regarding the company's medical cost trend assumptions [5]. - It is claimed that Molina was experiencing a dislocation between premium rates and medical costs, which affected its near-term growth [5]. - The financial guidance for fiscal year 2025 was likely to be cut due to these issues, and positive statements made by the defendants were misleading [5]. Group 2: Financial Performance and Stock Impact - On July 7, 2025, Molina announced second-quarter financial results, revealing adjusted earnings of approximately $5.50 per share, which was below prior expectations, leading to a 10.2% cut in full-year earnings guidance from at least $24.50 per share to a range of $21.50 to $22.50 [6]. - Following this announcement, Molina's stock price fell by $6.97, or 2.9%, closing at $232.61 per share on July 7, 2025 [6]. - On July 23, 2025, Molina further slashed its full-year earnings guidance, reporting a GAAP net income of $4.75 per diluted share for the second quarter, an 8% decrease year over year, and cutting its full-year adjusted earnings guidance to no less than $19.00 per diluted share [7][8]. - This led to a significant drop in Molina's stock price by $32.03, or 16.84%, closing at $158.22 per share on July 24, 2025 [8].