Molina Healthcare(US:MOH) Newsfile·2025-11-23 13:04Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. for alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status by December 2, 2025 [2][5]. Summary by Sections Legal Investigation - Faruqi & Faruqi, LLP is encouraging investors who suffered losses in Molina to contact them regarding their legal rights [1][2]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [4]. 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 [5]. - Specific issues cited include a dislocation between premium rates and medical costs, dependence on low utilization of various health services, and the likelihood of cutting financial guidance for fiscal year 2025 [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 [6]. - The company cut its full-year 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 slashed its full-year earnings guidance, reporting a GAAP net income of $4.75 per diluted share for the second quarter, an 8% decrease year over year [8]. - The new guidance indicated a 13.6% cut to earnings per share, with full-year GAAP net income guidance reduced by 27% to $912 million [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].