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Molina Investors Face Dec. 2 Deadline To Seek Lead Role In Securities Class Action

The case centers on claims that Molina understated rising medical costs, rendering its 2025 outlook misleading.

Overview

  • Investors who purchased Molina shares between February 5 and July 23, 2025 must move by December 2, 2025 to be considered for lead-plaintiff status.
  • The lawsuit is pending in the U.S. District Court for the Central District of California as Hindlemann v. Molina Healthcare, Inc., No. 2:25-cv-09461.
  • Plaintiffs allege Molina failed to disclose problems with its medical cost trend assumptions and a mismatch between premium rates and medical costs.
  • The complaint says near-term growth relied on low utilization of behavioral health, pharmacy, and inpatient/outpatient services.
  • Molina cut 2025 guidance on July 7 and again on July 23 citing a challenging cost environment, and the stock fell 16.84% on July 24; multiple firms are now recruiting class members, and no class has been certified.