Overview

A class action lawsuit has been filed against Molina Healthcare, Inc. (“Molina” or the “Company”) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws. The Company’s common stock trades on the New York Stock Exchange (“NYSE”) exchange under the symbol “MOH.”

The Molina class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired Molina securities between February 5, 2025, and July 23, 2025, both dates inclusive, (the “Class Period”).

Molina is a health insurance company which provides managed healthcare services under the Medicaid and Medicare programs, and through the state insurance marketplaces. As of June 30, 2025, it serves approximately 5.7 million members eligible for government-sponsored healthcare programs, located across 22 states. It operates in four segments: Medicaid, Medicare, Marketplace, and Other.

On July 7, 2025, before the market opened, Molina issued a press release announcing its financial results for the second quarter of 2025 and significantly reducing its full-year earnings guidance. The company reported adjusted earnings of approximately $5.50 per share, which it said was below expectations due to “medical cost pressures in all three lines of business.” Molina warned that these cost pressures were expected to continue through the second half of the year and lowered its adjusted earnings per share forecast by 10.2% at the midpoint—from “at least $24.50 per share” to a range of $21.50 to $22.50 per share. The company explained that it was facing a “short-term earnings pressure” caused by a “dislocation between premium rates and medical cost trend which has recently accelerated.” Following this announcement, Molina’s stock price fell $6.97, or 2.9%, to close at $232.61 per share on July 7, 2025, on unusually heavy trading volume.

Then, on July 23, 2025, after the market closed, Molina issued another press release further lowering its earnings outlook. The company reported GAAP net income of $4.75 per diluted share for the second quarter, an 8% year-over-year decline, and cut its full-year adjusted earnings guidance again—this time to no less than $19.00 per diluted share, a reduction of approximately 13.6% from the guidance issued less than two weeks earlier. Molina also reduced its full-year 2025 GAAP net income projection by 27%, to $912 million. The company attributed the cuts to a “challenging medical cost trend environment,” including increased utilization of behavioral health, pharmacy, inpatient, and outpatient services. It also noted that the revised guidance reflected “new information gained in the quarterly closing process.” On this news, Molina’s stock price fell $32.03, or 16.84%, to close at $158.22 per share on July 24, 2025, again on heavy trading volume.

The lawsuit alleges that throughout the class period, Molina and its executives made materially false and misleading statements and failed to disclose adverse facts about the company’s business, operations, and prospects. Specifically, the lawsuit claims that defendants concealed material information regarding the company’s medical cost trend assumptions, the dislocation between premium rates and medical cost trends, and Molina’s reliance on low utilization of key medical services—such as behavioral health, pharmacy, and inpatient and outpatient care—for short-term growth. The lawsuit further alleges that, because of these undisclosed issues, Molina’s financial guidance for fiscal year 2025 was substantially overstated and that the company’s positive statements about its financial health and outlook were misleading and lacked a reasonable basis.

According to the lawsuit, when the true extent of Molina’s financial challenges was revealed through its July 2025 disclosures, the company’s stock price declined sharply, causing investors to suffer significant losses and damages.

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If you purchased or otherwise acquired Molina securities between February 5, 2025, and July 23, 2025, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as lead plaintiff in the Molina class action lawsuit is December 2, 2025.