Molina Healthcare(US:MOH) Globenewswireยท2025-10-12 13:17Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. due to alleged violations of federal securities laws, encouraging affected investors to contact them before the December 2, 2025 deadline for lead plaintiff applications in a federal securities class action [1][3]. Group 1: Allegations Against Molina - The complaint alleges that Molina and its executives made false or misleading statements regarding the company's medical cost trend assumptions and failed to disclose adverse facts impacting financial guidance [3]. - Specific issues highlighted include a dislocation between premium rates and medical costs, reliance on low utilization of various health services, and the likelihood of significant cuts to financial guidance for fiscal year 2025 [3]. 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 expectations, leading to a 10.2% cut in full-year earnings guidance [4]. - Following this announcement, Molina's stock price fell by $6.97, or 2.9%, closing at $232.61 per share on July 7, 2025, amid heavy trading volume [4]. - On July 23, 2025, Molina further reduced 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 guidance to no less than $19.00 per diluted share [5][6]. - This led to a significant stock price drop of $32.03, or 16.84%, closing at $158.22 per share on July 24, 2025, also on unusually heavy trading volume [6].