Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. due to alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status by December 2, 2025 [1][3]. Group 1: Allegations Against Molina - The complaint alleges that Molina and its executives made false or misleading statements regarding the company's medical cost trend assumptions and failed to disclose adverse facts affecting its financial outlook [3]. - Specific issues cited include a dislocation between premium rates and medical costs, reliance on low utilization of services, and the likelihood of substantial cuts to financial guidance for fiscal year 2025 [3]. Group 2: Financial Performance and Stock Impact - On July 7, 2025, Molina announced second-quarter results, reporting adjusted earnings of approximately $5.50 per share, which was below 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 reduced 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 guidance for full-year adjusted earnings to no less than $19.00 per diluted share, a 13.6% reduction [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].
UPCOMING DEADLINE: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Molina Healthcare