STEVENSON, Md.--(BUSINESS WIRE)--The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Molina Healthcare, Inc. (NYSE: MOH) (“Molina” or the “Company”) securities during the period between October 31, 2014 and August 2, 2017, inclusive (the “Class Period”). Investors who wish to become proactively involved in the litigation have until June 29, 2018 to seek appointment as lead plaintiff.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Molina securities during the Class Period. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants’ failure to disclose during the Class Period that Molina’s administrative infrastructure was never designed to handle the size and complexity of the Company’s rapid growth strategy and it failed to remediate systemic issues and costly disruptions with critical administrative infrastructure functions, including provider payment and utilization management.
According to the complaint, following an April 28, 2016 announcement of a drastic cut to earnings guidance due to higher costs tied to administrative capacity issues, a February 15, 2017 announcement that the Company could not commit to ACA Health Exchange participation beyond 2017, and an August 2, 2017 announcement of 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, the value of Molina shares declined significantly.
If you have suffered a loss in excess of $100,000 from investment in Molina securities purchased on or after October 31, 2014 and held through the revelation of negative information during and/or at the end of the Class Period and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please contact Brower Piven either by email at firstname.lastname@example.org or by telephone at (410) 415-6616.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.