Press Release

MOH CLASS ACTION LAWSUIT: Molina Healthcare, Inc. Medical Costs Trigger Securities Fraud Class Action after Stock Plummets 16% — Investors Urged to Contact BFA Law

NEW YORK–(BUSINESS WIRE)–$MOH #BFA–Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Molina Healthcare, Inc. (NYSE: MOH) and certain of the Company’s senior executives for potential violations of the federal securities laws.


If you invested in Molina, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/molina-healthcare-inc-class-action.

Investors have until December 2, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Molina securities. The case is pending in the U.S. District Court for the Central District of California and is captioned: Hindlemann v. Molina Healthcare, Inc., et al., No. 25-cv-9461.

Why Was Molina Sued Under the Federal Securities Laws?

Molina is a health insurance company that provides managed healthcare services to low-income individuals under Medicaid and Medicare programs. During the relevant period, Molina stated that the Company’s ā€œearnings growth profileā€ was ā€œsolid heading into 2025.ā€ The Company also told investors that it ā€œcontinuously monitor[ed] utilization patternsā€ and that it was able to ā€œmitigate the negative effects of healthcare cost inflation.ā€ In truth, as alleged, Molina faced increased medical costs pressures that it could not mitigate due to increased utilization in all three of its business lines.

The Stock Declines as the Truth Is Revealed

On July 7, 2025, Molina revealed that its Q2 2025 adjusted earnings were approximately $5.50 per share, which was ā€œbelow its prior expectationsā€ due to ā€œmedical cost pressures in all three lines of business.ā€ The Company announced it ā€œexpects these medical cost pressures to continue into the second half of the yearā€ and cut guidance for expected adjusted earnings per share by 10.2% at the midpoint to a ā€œrange of $21.50 to $22.50 per share.ā€

Then, on July 23, 2025, Molina revealed that it ā€œnow expects its full year 2025 adjusted earnings to be no less than $19.00 per diluted share.ā€ Molina stated this was due to a ā€œchallenging medical cost trend environment,ā€ including increased ā€œutilization of behavioral health, pharmacy, and inpatient and outpatient services.ā€ On this news, the price of Molina stock fell $32.03 per share, or 16.8%, from $190.25 per share on July 23, 2025, to $158.22 per share on July 24, 2025.

Click here for more information: https://www.bfalaw.com/cases/molina-healthcare-inc-class-action.

What Can You Do?

If you invested in Molina you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/molina-healthcare-inc-class-action

Or contact:

Ross Shikowitz

[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named ā€œElite Trial Lawyersā€ by the National Law Journal, among the top ā€œ500 Leading Plaintiff Financial Lawyersā€ by Lawdragon, ā€œTitans of the Plaintiffs’ Barā€ by Law360 and ā€œSuperLawyersā€ by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/molina-healthcare-inc-class-action

Attorney advertising. Past results do not guarantee future outcomes.

Contacts

Ross Shikowitz

[email protected]
212.789.3619

Author

Related Articles

Back to top button