LEAD PLAINTIFF DEADLINE IS DECEMBER 2, 2025.
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Case Background:
A class action lawsuit was filed 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.”
On July 7, 2025, before the market opened, Molina issued a press release announcing its financial results for the second quarter of 2025 and slashed its full year 2025 adjusted earnings per share guidance. Specifically, Molina reported second quarter 2025 adjusted earnings of approximately $5.50 per share, which was “below its prior expectations” due to “medical cost pressures in all three lines of business.” Molina revealed it “expects these medical cost pressures to continue into the second half of the year” and cut guidance for expected adjusted earnings per share 10.2% at the midpoint, from “at least $24.50 per share” to a “range of $21.50 to $22.50 per share.” Molina also disclosed the company was experiencing a “short-term earnings pressure” from a “dislocation between premium rates and medical cost trend which has recently accelerated.” On this news, Molina’s stock price fell $6.97, or 2.9%, to close at $232.61 per share on July 7, 2025.
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. Specifically, Molina revealed, in part, that the company’s “GAAP net income was $4.75 per diluted share for the second quarter of 2025, a decrease of 8% year over year;” and that it “now expects its full year 2025 adjusted earnings to be no less than $19.00 per diluted share.” This represented another 13.6% cut to guidance of earnings per share at the midpoint, from the cut to guidance announced less than two weeks earlier. Molina also cut its guidance for its full year 2025 GAAP net income 27% to $912 million. 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.” On this news, Molina’s stock price fell $32.03, or 16.84%, to close at $158.22 per share on July 24, 2025.
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) that, as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
What is a Lead Plaintiff?
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. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.