Molina Healthcare(US:MOH) Prnewswireยท2025-10-15 14:39Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. due to alleged violations of federal securities laws, particularly concerning misleading statements about the company's financial health and medical cost trends [3][4]. Summary by Sections Company Overview - Molina Healthcare, Inc. is a publicly traded company on the NYSE under the ticker MOH [1]. Allegations - The complaint alleges that Molina and its executives made false or misleading statements regarding: - Material adverse facts about the company's medical cost trend assumptions [3]. - A dislocation between premium rates and medical costs [3]. - Dependency on low utilization of behavioral health and other services for near-term growth [3]. - Likelihood of substantial cuts to financial guidance for fiscal year 2025 [3]. - Misleading positive statements about the company's business and operations [3]. Financial Performance - On July 7, 2025, Molina announced second-quarter results, reporting adjusted earnings of approximately $5.50 per share, which was below prior expectations due to medical cost pressures [4]. - The company cut its full-year 2025 adjusted earnings guidance by 10.2%, revising it from at least $24.50 per share to a range of $21.50 to $22.50 per share [4]. - Following this announcement, Molina's stock price fell by $6.97, or 2.9%, closing at $232.61 per share [4]. Further Guidance Cuts - On July 23, 2025, Molina further reduced its full-year 2025 earnings guidance, expecting adjusted earnings to be no less than $19.00 per diluted share, representing a 13.6% cut from previous guidance [5]. - The company also cut its full-year GAAP net income guidance by 27% to $912 million [5]. - Following this news, Molina's stock price dropped by $32.03, or 16.84%, closing at $158.22 per share [5].