Molina Healthcare(US:MOH) Newsfile·2025-11-12 00:44Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. and reminds investors of the December 2, 2025 deadline to seek the role of lead plaintiff in a federal securities class action against the company [2][5]. Group 1: Allegations Against Molina - The complaint alleges that Molina and its executives violated federal securities laws by making false or misleading statements and failing to disclose material adverse facts regarding the company's medical cost trend assumptions [5]. - Specific allegations include a dislocation between premium rates and medical costs, dependence on low utilization of various health services for near-term growth, and the likelihood of substantial cuts to financial guidance for fiscal year 2025 [5]. Group 2: 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 due to medical cost pressures across all business lines [6][7]. - The company cut its full-year 2025 adjusted earnings per share guidance by 10.2%, from at least $24.50 to a range of $21.50 to $22.50, leading to a stock price drop of $6.97, or 2.9%, to close at $232.61 [7]. - On July 23, 2025, Molina further slashed its full-year 2025 earnings guidance, reporting GAAP net income of $4.75 per diluted share for the second quarter, an 8% year-over-year decrease, and cutting its full-year adjusted earnings guidance to no less than $19.00 per diluted share, resulting in a stock price decline of $32.03, or 16.84%, to close at $158.22 [8]. Group 3: Legal Proceedings and Investor Actions - The court-appointed lead plaintiff is defined as the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [9]. - Any member of the putative class can move the court to serve as lead plaintiff or choose to remain an absent class member without affecting their ability to share in any recovery [9]. - Faruqi & Faruqi encourages anyone with information regarding Molina's conduct to contact the firm, including whistleblowers and former employees [10].