Molina Healthcare Hit With Investor Suit Over Medical Cost Trend Disclosures

Investors have until December 2, 2025 to seek lead-plaintiff status in the Central District of California case.

Overview

The case, Hindlemann v. Molina Healthcare, Inc., No. 25-cv-09461, asserts Sections 10(b) and 20(a) claims on behalf of purchasers from February 5 through July 23, 2025.
Plaintiffs allege the company understated medical cost trends, faced a premium-rate mismatch, and depended on low utilization in behavioral health, pharmacy, and inpatient and outpatient services.
On July 7, 2025, Molina disclosed Q2 adjusted EPS of about $5.50, cited cost pressures across all business lines, and reduced guidance by roughly 10.2% at the midpoint.
On July 23, 2025, the company reported GAAP EPS of $4.75, lowered full-year adjusted EPS to no less than $19.00, and the stock fell about 16.8% ($32.03) by the next trading day.
Robbins Geller, Bleichmar Fonti & Auld, and the Rosen Law Firm are recruiting investors for lead-plaintiff consideration, noting the allegations remain unproven and no class has been certified.