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Molina Healthcare, Inc. (MOH)

NYSE:MOH

Summary

Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 In Molina Healthcare, Inc. To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Molina Healthcare, Inc. (“Molina” or the “Company”) (NYSE:MOH) of the June 29, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in Molina stock or options between October 31, 2014 and August 2, 2017 and would like to discuss your legal rights, please fill out the form below.  There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. 

The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Molina securities between October 31, 2014 and August 2, 2017 (the “Class Period”).  The case, Steamfitters Local 449 Pension Plan v. Molina Healthcare, Inc. et al, No. 18-cv-03579 was filed on April 27, 2018.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that the Company’s administrative infrastructure was never designed to handle the size and complexity of the Company’s rapid growth strategy.

According to the complaint, throughout the Class Period, the Company and its executives repeatedly invoked the strategy of “leveraging” the Company’s administrative infrastructure in order to finance aggressive CapEx growth and participation in ACA Health Exchanges. However, in its April 28, 2016 earnings release, the Company reported a sharp earnings miss for the first quarter ended March 31, 2016 and drastically cut full-year 2016 earnings guidance. Molina blamed the poor results on higher costs tied to administrative capacity issues.

After the announcement, Molina’s share price fell from $64.22 per share on April 28, 2016 to a closing price of $51.76 on April 29, 2016—a $12.46 or a 19.40% drop.

Then, on February 15, 2017, Molina announced its financial results for the fourth quarter and full-year ended December 31, 2016. Despite Molina’s prior expressions of commitment to a rapid growth strategy, Molina executives cautioned that the Company could not commit to ACA Health Exchange participation beyond 2017.

After the announcement, Molina’s share price fell from $59.89 per share on February 15, 2017 to a closing price of $49.18 on February 16, 2017—a $10.71 or a 17.88% drop.

Finally, on August 2, 2017, Molina announced its financial results for the second quarter ended June 30, 2017. The Company reported a net loss of $230 million for the quarter, termination of its ACA Health Exchange participation in Utah and Wisconsin, and a major restructuring plan.

After the announcement, Molina’s share price fell from $66.24 per share on August 2, 2017 to a closing price of $62.32 on August 3, 2017 —a $3.92 or a 5.92% drop.

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  • Case:
    Molina Healthcare, Inc. (MOH)
  •    

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Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 04/30/2018

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