Molina Healthcare(US:MOH) Globenewswireยท2025-10-15 18:05Core Viewpoint - Molina Healthcare, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company and its executives failed to disclose critical financial information during the class period from February 5, 2025, to July 23, 2025 [1][3]. Group 1: Allegations and Financial Impact - The lawsuit alleges that Molina Healthcare did not disclose adverse facts regarding its medical cost trend assumptions and the dislocation between premium rates and medical costs [3]. - It is claimed that Molina's near-term growth relied on low utilization of various healthcare services, which was not communicated to investors [3]. - Following the announcement of second quarter 2025 adjusted earnings of approximately $5.50 per share, which was below expectations due to medical cost pressures, Molina cut its earnings guidance by 10.2% at the midpoint [4]. - 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 revised its full-year 2025 adjusted earnings expectation to no less than $19.00 per diluted share [5]. Group 2: Class Action Process - Investors who purchased Molina Healthcare securities during the class period can seek appointment as lead plaintiff in the class action lawsuit, which allows them to act on behalf of other class members [6]. - The lead plaintiff can select a law firm of their choice to represent the class in the lawsuit [6]. Group 3: About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [7]. - The firm has been recognized for securing the most monetary relief for investors in securities class action cases, ranking 1 in the ISS Securities Class Action Services rankings for four out of the last five years [7].