Molina Investors Face Securities Class Action as Firms Urge Lead Plaintiff Bids by Dec. 2
The suit follows July guidance cuts tied to rising medical costs that sent shares sharply lower.
Overview
- The putative class covers purchasers of Molina Healthcare securities from February 5, 2025 through July 23, 2025.
- Complaints allege undisclosed adverse medical cost trends, a mismatch between premium rates and medical costs, and reliance on low utilization across behavioral health, pharmacy, inpatient and outpatient services.
- Molina reduced its 2025 outlook on July 7 citing medical cost pressures, then on July 23 said it expects adjusted earnings of no less than $19.00 per share and cut full‑year GAAP net income guidance to $912 million.
- Following these disclosures, the stock fell 2.9% on July 7 and 16.8% on July 24 on unusually heavy trading volume.
- A case is pending in the Central District of California as Hindlemann v. Molina Healthcare, and firms including Bleichmar Fonti & Auld, Rosen Law Firm, and Faruqi & Faruqi are soliciting investors while no class has been certified.