Molina Healthcare(US:MOH) Globenewswireยท2025-10-28 10:15Core 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][3]. Summary by Sections Class Action Details - The class action lawsuit is titled Hindlemann v. Molina Healthcare, Inc., and it allows purchasers of Molina Healthcare securities during the specified class period to seek lead plaintiff status by December 2, 2025 [1][2]. Allegations Against Molina Healthcare - The lawsuit alleges that Molina Healthcare failed to disclose critical information regarding its medical cost trend assumptions, a dislocation between premium rates and medical costs, and that its near-term growth relied on reduced utilization of various health services [3]. - It is claimed that Molina's financial guidance for fiscal year 2025 was likely to be significantly reduced due to these undisclosed issues [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 across all business lines, leading to a 10.2% cut in earnings guidance [4]. - Following the financial results announcement 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 further reduced its full-year 2025 earnings guidance to no less than $19.00 per diluted share, resulting in a nearly 17% drop in stock price [5].