Molina Executives, Board Sued Over Role in July Stock Price Dips

Molina Healthcare Inc. executives and its board of directors were hit with a shareholder derivative lawsuit Friday over their alleged role in concealing unexpected costs before lowering 2025 earnings guidance.

The officers failed to disclose a mismatch between premium rates and medical cost trends, or that its near-term growth depended on its patients not using certain services, according to a complaint filed in the US District Court for the Central District of California.

Molina issued a press release Feb. 5 on its financial results for the fourth quarter of last year and its 2025 revenue and earnings expectations, touting the ...