Molina Healthcare Investor Sues Over Undisclosed Obamacare Costs

Molina Healthcare Inc. concealed unexpectedly raised costs in its government-sponsored insurance plans as it twice lowered 2025 earnings guidance and saw stock prices plummet in a month, an investor’s proposed class action said.

Molina and its top executives didn’t tell investors about a mismatch between its premium rates and medical cost trends, or that short-term growth relied on patients not using “behavioral health, pharmacy, and inpatient and outpatient services,” according to the complaint filed in the US District Court for the Central District of California on Oct. 3.

Investor Jeffrey Hindlemann filed the proposed class action seeking damages for alleged ...