Molina Healthcare Investors Face Dec. 2 Deadline to Seek Lead Role in Securities Class Action
The lawsuit claims the insurer misled the market about medical cost trends before July guidance cuts triggered sharp share declines.
Overview
- Investors who bought Molina shares between February 5 and July 23, 2025 constitute the defined class period for the case.
- The action is pending in the U.S. District Court for the Central District of California as Hindlemann v. Molina Healthcare, Inc., No. 25-cv-09461, and the class has not been certified.
- Plaintiffs cite two July 2025 guidance reductions, including a move to at least $19.00 adjusted EPS and GAAP net income guidance of $912 million, followed by stock drops of about 2.9% on July 7 and 16.84% on July 24.
- The complaint alleges undisclosed pressure from medical cost trends, a dislocation between premium rates and costs, and dependence on depressed utilization of behavioral health, pharmacy, and inpatient and outpatient services.
- Multiple investor firms, including Rosen, Schall, Faruqi & Faruqi, Levi & Korsinsky, DJS Law Group, the Law Offices of Frank R. Cruz, and Kahn Swick & Foti, are soliciting shareholders to move for lead plaintiff by December 2, 2025 under §§10(b), 20(a) and Rule 10b-5.