Molina Healthcare(US:MOH) Prnewswire·2025-10-23 19:30Core Viewpoint - Molina Healthcare, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims centered around undisclosed adverse financial conditions and misleading guidance during the class period from February 5, 2025, to July 23, 2025 [1][4]. Summary by Sections Class Action Details - The class action lawsuit is titled Hindlemann v. Molina Healthcare, Inc., and it allows investors who purchased Molina securities during the specified class period to seek appointment as lead plaintiff by December 2, 2025 [1][7]. - The lawsuit alleges that Molina Healthcare and its executives failed to disclose critical information regarding the company's financial health, particularly concerning medical cost trends and their impact on earnings guidance [4][5]. Financial Performance and Guidance - 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 across all business lines [5]. - The company cut its earnings guidance for fiscal year 2025 by 10.2% at the midpoint, citing a dislocation between premium rates and medical costs [5]. - On July 23, 2025, Molina reported a GAAP net income of $4.75 per diluted share for Q2 2025, an 8% decrease year-over-year, and revised its full-year adjusted earnings expectation to no less than $19.00 per diluted share [6]. Allegations of Misleading Information - The lawsuit claims that Molina Healthcare did not disclose material adverse facts about its medical cost trend assumptions and the dependency of its growth on reduced utilization of various health services [4][6]. - Following the negative earnings report and guidance cut, Molina's stock price fell nearly 17%, indicating a significant market reaction to the disclosed financial difficulties [6].