Molina Healthcare(US:MOH) Newsfile·2025-11-18 23:15Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. due to allegations of violations of federal securities laws related to misleading statements and undisclosed adverse facts affecting the company's financial performance [2][5]. Summary by Sections Legal Investigation - Faruqi & Faruqi, LLP is encouraging investors who suffered losses in Molina to contact them regarding their legal options, particularly for those who purchased securities between February 5, 2025, and July 23, 2025 [1][2]. Allegations Against Molina - The complaint alleges that Molina and its executives made false or misleading statements and failed to disclose critical information, including: - Material adverse facts about the company's medical cost trend assumptions [5]. - A dislocation between premium rates and medical costs [5]. - Dependency on low utilization of behavioral health, pharmacy, and inpatient and outpatient services for near-term growth [5]. - Likelihood of substantial cuts to financial guidance for fiscal year 2025 [5]. - Misleading positive statements regarding the company's business and prospects [5]. 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, 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 [6]. - Following this announcement, Molina's stock price fell by $6.97, or 2.9%, closing at $232.61 per share on July 7, 2025 [6]. - 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% reduction [7][8]. - 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 [8].