Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Molina Healthcare, Inc. (“Molina”) (NYSE: MOH) securities between February 5, 2025 and July 23, 2025, inclusive (the “Class Period”).
Molina provides healthcare services to low-income individuals under the Medicaid and Medicare programs and through the state insurance marketplaces.
The Class Period begins on February 5, 2025, when Molina issued a press release reporting its financial results for the fourth quarter and year ended December 31, 2024 and the company’s full-year 2025 revenue and earnings guidance. Specifically, the press release touted Molina’s financial results and purported full year revenue guidance, including that the company “issued its full year 2025 earnings guidance with expected premium revenue of approximately $42 billion and adjusted earnings of at least $24.50 per diluted share, which includes approximately $1.00 per diluted share of implementation costs for recent Medicaid and Medicare Duals contract wins scheduled to commence in 2026 and yields approximately 13% growth over 2024.” Molina also highlighted that the company “expects its full year GAAP earnings per share in 2025 to be at least $22.50 per share and its full year adjusted earnings per share in 2025 to be at least $24.50 per share, representing 8% growth over the full year 2024.”
Then, on July 23, 2025, after the market closed, Molina issued a press release reporting its financial results for the second quarter ended June 30, 2025 and further slashed the company’s full-year 2025 earnings guidance. Molina attributed its disappointing results to a “challenging medical cost trend environment,” including mere “utilization of behavioral health, pharmacy, and inpatient and outpatient services.” Molina alleged its guidance cut also reflected “new information gained in the quarterly closing process.”
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose: (1) material, adverse facts concerning Molina’s “medical cost trend assumptions”; (2) that Molina was experiencing a “dislocation between premium rates and medical cost trend”; (3) that Molina’s near term growth was dependent on a lack of “utilization of behavioral health, pharmacy, and inpatient and outpatient services”; (4) as a result, Molina’s financial guidance for fiscal year 2025 was substantially likely to be cut; and (5) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On January 30, 2026, the Court appointed Lead Plaintiff and Lead Counsel. This action is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.