MOH SHAREHOLDER ACTION REMINDER: Faruqi & Faruqi, LLP Announces that Molina Healthcare Investors Have Opportunity to Lead Class Action Lawsuit

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. due to alleged violations of federal securities laws, encouraging affected investors to contact them before the December 2, 2025 deadline for lead plaintiff applications in a federal securities class action [1][3]. Summary by Sections Allegations Against Molina - The complaint alleges that Molina and its executives made false or misleading statements and failed to disclose material adverse facts regarding the company's medical cost trend assumptions, leading to a dislocation between premium rates and medical costs [3]. - It is claimed that Molina's near-term growth relied on reduced utilization of behavioral health, pharmacy, and inpatient and outpatient services, which could lead to significant cuts in financial guidance for fiscal year 2025 [3]. Financial Performance and Guidance Cuts - On July 7, 2025, Molina announced second-quarter financial results, reporting adjusted earnings of approximately $5.50 per share, which was below prior expectations due to medical cost pressures across all business lines [4]. - The company cut its full-year 2025 adjusted earnings per share guidance by 10.2%, revising it from at least $24.50 per share 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]. Further Financial Declines - On July 23, 2025, Molina further reduced its full-year 2025 earnings guidance, reporting GAAP net income of $4.75 per diluted share for the second quarter, an 8% decrease year-over-year [5]. - The new guidance indicated adjusted earnings would be no less than $19.00 per diluted share, representing a 13.6% cut from the previous guidance [5]. - Additionally, the company cut its full-year 2025 GAAP net income guidance by 27% to $912 million, attributing this to a challenging medical cost trend environment [6]. - Following this news, Molina's stock price plummeted by $32.03, or 16.84%, closing at $158.22 per share on July 24, 2025 [6].