Molina Healthcare, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms specializing in securities fraud cases, is investigating potential claims against Molina Healthcare, Inc. (MOH)

If you purchased or acquired Molina Healthcare, Inc. securities between February 5, 2025 and July 23, 2025, you may be eligible to join this class action lawsuit and seek compensation for your losses.

About Molina Healthcare

Molina Healthcare provides managed healthcare services through government-sponsored programs. The company works with state governments to offer health plans to families and individuals who qualify for Medicaid, Medicare, and state insurance marketplaces.

The company’s operations span several segments, including Medicaid, Medicare, Marketplace, and other government-funded programs.

The Allegations

A class action lawsuit alleges that Molina Healthcare and certain executives made materially false and misleading statements, and failed to disclose adverse facts about the company’s financial health and medical-cost trends..

According to the complaint, Molina and its executives:

• Misrepresented its medical cost trend assumptions, concealing a growing dislocation between premium rates and medical cost trends.
• Failed to disclose that increased utilization of behavioral health, pharmacy, and inpatient/outpatient services was pressuring margins and undermining its 2025 earnings outlook.
• Issued financial guidance that was unrealistic and likely to be cut, despite internal knowledge of rising costs.

Throughout the class period, Molina allegedly reassured investors that cost management was strong and that its 2025 earnings target of at least $24.50 per share was achievable.

On July 7, 2025, before the market opened, Molina announced preliminary Q2 results showing adjusted earnings of about $5.50 per share, below prior expectations due to “medical cost pressures in all three lines of business.”

The company cut its full-year 2025 adjusted EPS guidance by 10.2%, from “at least $24.50 per share” to a range of $21.50 to $22.50 per share, citing “a dislocation between premium rates and medical cost trend.” On this news, the stock fell $6.97 (-2.9%) to $232.61 on heavy volume.

Then, on July 23, 2025, after market close, Molina released its second-quarter results, reporting GAAP EPS of $4.75 and adjusted EPS of $5.48, an 8% year-over-year decline. The company further cut its full-year 2025 adjusted earnings guidance to no less than $19.00 per share and its GAAP earnings guidance to no less than $16.90 per share, a second reduction in two weeks.

Molina attributed these cuts to a “challenging medical cost trend environment” and “new information gained in the quarterly closing process.”

Following the disclosure, Molina’s stock plunged $32.03 (-16.84%) to close at $158.22 on July 24, 2025, resulting in substantial losses to investors. The lawsuit alleges that these disclosures revealed the truth, that Molina’s prior assurances about its cost controls and earnings stability were materially misleading.

Important Dates

• Class period: February 5, 2025 to July 23, 2025
• Complaint filed: October 3, 2025
• Lead plaintiff deadline: December 2, 2025

Your Rights and Next Steps

If you purchased or acquired Molina Healthcare securities during the class period, you have important legal rights. Investors who suffered financial losses may seek to be appointed lead plaintiff, the party that directs the litigation on behalf of all investors. To be considered, you must file a motion with the court by December 2, 2025.

You do not need to serve as lead plaintiff to participate. All investors who acquired Molina stock during the class period may share in any recovery if the case is successful or a settlement is reached.

Lawyers are available to help you understand your rights and evaluate your eligibility at no cost or obligation.

You May Be Entitled to Compensation

If you invested in Molina Healthcare between February 5, 2025 and July 23, 2025 and experienced losses, you may be entitled to compensation. Lawyers are actively investigating this matter and are ready to help you pursue your claim.

To find out if you qualify and to take the next step, complete the form below to join the lawsuit and protect your rights.