Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. for alleged violations of federal securities laws, encouraging affected investors to participate in a class action lawsuit [2][5]. Summary by Sections Legal Action - Investors who purchased Molina securities between February 5, 2025, and July 23, 2025, may have the opportunity to lead a class action lawsuit against the company [1][2]. - The deadline to seek the role of lead plaintiff in the federal securities class action is December 2, 2025 [2]. 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 [5]. 2. A dislocation between premium rates and medical cost trends [5]. 3. Dependency on low utilization of behavioral health, pharmacy, and inpatient and outpatient services for near-term growth [5]. 4. Likelihood of substantial cuts to financial guidance for fiscal year 2025 [5]. 5. Misleading positive statements about the company's business and operations [5]. Financial Performance - 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 [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 [7]. - Following this announcement, Molina's stock price fell by $6.97, or 2.9%, closing at $232.61 per share [7]. - 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 [8]. - The new guidance for full-year 2025 adjusted earnings was set at no less than $19.00 per diluted share, reflecting a 13.6% cut from previous guidance [8]. - Molina's stock price dropped by $32.03, or 16.84%, closing at $158.22 per share following this announcement [8].
MOH SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Announces that Molina Healthcare Investors Have Opportunity to Lead Class Action Lawsuit