Molina investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Molina is a managed care company, focused on 4.5 million members eligible for Medicaid, Medicare, and other government-sponsored healthcare programs.
The Class Period begins on October 31, 2014, the day after Molina issued a press release announcing financial results for the third quarter ended September 30, 2014. During the related earnings call, CEO J. Mario Molina stated, “Administrative costs are also tracking just as we expected. We continue to reap the benefit of the investments in infrastructure that we made last year.”
The truth regarding Molina’s failed growth strategy and inadequate administrative infrastructure was revealed through a series of partial disclosures, including the Company’s April 28, 2016 earnings release. On that date, Molina reported a sharp earnings miss for the first quarter ended March 31, 2016 and drastically cut full-year 2016 earnings guidance. Molina blamed the poor results on higher costs tied to administrative capacity issues. On this news, Molina’s common stock price fell $12.46 per share, or 19.40 percent, to close at $51.76 per share on April 29, 2016.
On February 15, 2017, Molina announced its financial results for the fourth quarter and full-year ended December 31, 2016. Despite Molina’s prior expressions of commitment to a rapid growth strategy, Molina executives cautioned that the Company could not commit to ACA Health Exchange participation beyond 2017. On this news, Molina’s common stock price fell $10.71 per share, or 17.88 percent, to close at $49.18 per share on February 16, 2017.
On August 2, 2017, Molina announced its financial results for the second quarter ended June 30, 2017. The Company reported a net loss of $230 million for the quarter, termination of its ACA Health Exchange participation in Utah and Wisconsin, and a major restructuring plan. During the related earnings call, Molina revealed that its administrative infrastructure was never designed to sustain such rapid growth. On this news, Molina’s common stock price fell $3.92 per share, or 5.92 percent, to close at $62.32 per share on August 3, 2017.
If you are a member of the class described above, you may no later than June 29, 2018 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
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Radnor, PA 19087
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