MOH INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that Molina Healthcare, Inc. Investors with Substantial Losses Have Opportunity to Lead Securities Class Action Lawsuit

Core Viewpoint - The Molina Healthcare class action lawsuit alleges that the company and its executives failed to disclose critical information regarding financial performance and medical cost trends, leading to significant stock price declines during the class period [3][4][5]. Group 1: Class Action Details - The class action lawsuit is titled Hindlemann v. Molina Healthcare, Inc., and covers purchasers of Molina Healthcare securities from February 5, 2025, to July 23, 2025 [1]. - Investors have until December 2, 2025, to seek appointment as lead plaintiff in the lawsuit [1][6]. - The lawsuit claims violations of the Securities Exchange Act of 1934 by Molina Healthcare and its executives [1][3]. Group 2: Allegations Against Molina Healthcare - The lawsuit alleges that Molina Healthcare did not disclose adverse facts about 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 reduced utilization of various healthcare services, which was not communicated to investors [3]. - The company’s financial guidance for fiscal year 2025 was likely to be cut due to these undisclosed issues [3]. Group 3: Financial Performance and Stock Impact - On July 7, 2025, Molina Healthcare reported adjusted earnings of approximately $5.50 per share, which was below prior expectations due to medical cost pressures [4]. - The company cut its earnings guidance by 10.2% at the midpoint, indicating ongoing medical cost pressures [4]. - Following the financial disclosures, Molina Healthcare's stock price fell nearly 17% after the second quarter results were announced on July 23, 2025, which included a GAAP net income of $4.75 per diluted share, an 8% decrease year over year [5].