Molina Healthcare(US:MOH) Prnewswireยท2025-11-03 14:58Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. due to alleged violations of federal securities laws, encouraging investors who suffered losses exceeding $75,000 to contact them directly [1][3]. Summary by Sections Legal Investigation - The law firm is looking into claims against Molina Healthcare, highlighting a deadline of December 2, 2025, for investors to seek the role of lead plaintiff in a federal securities class action [1][6]. Allegations Against Molina - The complaint alleges that Molina and its executives made false or misleading statements regarding: 1. Material adverse facts about the company's medical cost trend assumptions [3]. 2. A dislocation between premium rates and medical cost trends [3]. 3. Molina's near-term growth being dependent on low utilization of various health services [3]. 4. A substantial likelihood of cutting financial guidance for fiscal year 2025 [3]. 5. Misleading positive statements about the company's business and prospects [3]. Financial Performance and Stock Impact - On July 7, 2025, Molina announced second-quarter financial results, revealing adjusted earnings of approximately $5.50 per share, which was below prior expectations, leading to a 10.2% cut in full-year earnings guidance from at least $24.50 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 on July 7, 2025 [4]. - On July 23, 2025, Molina further slashed its full-year earnings guidance, reporting GAAP net income of $4.75 per diluted share for the second quarter, an 8% decrease year-over-year, and cutting full-year adjusted earnings guidance to no less than $19.00 per diluted share, representing a 13.6% cut [5]. - This led to a significant drop in Molina's stock price by $32.03, or 16.84%, closing at $158.22 per share on July 24, 2025 [5].