SAN DIEGO & LONG BEACH, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Molina Healthcare, Inc. (NYSE: MOH) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between October 31, 2014 and August 2, 2017. Molina provides Medicaid-related solutions to meet the health care needs of low-income families and individuals and to assist state agencies in their administration of the Medicaid program in the United States.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/molina-healthcare-inc
Molina Accused of Wrongly Touting High Expectations for Its Administrative Infrastructure
According to the complaint, Molina predicted that the company would grow revenues from $6 billion to $12 billion with the help of a scalable administrative infrastructure designed to accommodate Medicaid expansion. Despite these optimistic forecasts, the company's administrative infrastructure could not support rapid growth into existing Medicaid markets and new Patient Protection and Affordable Care Act health insurance marketplaces ("ACA Health Exchanges") in a cost-effective manner. On April 28, 2016, Molina reported a sharp earnings miss for the first quarter of 2016 and drastically cut full-year 2016 earnings guidance, citing higher costs associated with administrative capacity issues. Then, on February 15, 2017, Molina cautioned that the company could not commit to ACA Health Exchange participation beyond 2017. Finally, on August 2, 2017, Molina reported a net loss of $230 million for the second quarter of 2017, admitting that its administrative infrastructure was never designed to sustain rapid growth.
Molina Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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