Molina Healthcare(US:MOH) Businesswire·2025-12-02 14:49Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Molina Healthcare, Inc. due to allegations of violations of federal securities laws, including making false or misleading statements regarding the company's financial health and medical cost trends [2][3]. Summary by Sections Legal Investigation - Faruqi & Faruqi, LLP is encouraging investors who suffered losses in Molina Healthcare to contact them directly to discuss legal options [1]. - The firm has set a deadline of December 2, 2025, for investors to seek the role of lead plaintiff in a federal securities class action against Molina [2]. Allegations Against Molina Healthcare - The complaint alleges that Molina and its executives failed to disclose material adverse facts about the company's medical cost trend assumptions and the dislocation between premium rates and medical costs [3]. - It is claimed that Molina's near-term growth relied on a lack of utilization of various health services, which led to a substantial likelihood of cutting financial guidance for fiscal year 2025 [3]. 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 [3]. - 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 [3]. - Following this announcement, Molina's stock price fell by $6.97, or 2.9%, closing at $232.61 per share on July 7, 2025 [3]. Further Financial Adjustments - On July 23, 2025, Molina further slashed its full-year 2025 earnings guidance, reporting a GAAP net income of $4.75 per diluted share for the second quarter, an 8% decrease year over year [4]. - The new guidance for full-year 2025 adjusted earnings was set at no less than $19.00 per diluted share, representing a 13.6% cut from the previous guidance [4]. - Molina's stock price dropped by $32.03, or 16.84%, closing at $158.22 per share on July 24, 2025, following this announcement [4].