WILMINGTON, Del.--(BUSINESS WIRE)--
Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Molina Healthcare, Inc. (NYSE: MOH)?
- Did you purchase your shares between August 31, 2014 and August 2, 2017, inclusive?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of Molina Healthcare, Inc. (“Molina” or the “Company”) (NYSE: MOH) between August 31, 2014 and August 2, 2017, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Molina during the Class Period, or purchased shares prior to the Class Period and still hold Molina, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, Delaware 19801, by telephone at (888) 969-4242, or by e-mail at [email protected].
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) Molina’s administrative infrastructure was never designed to handle the size and complexity of the Company’s rapid growth strategy; (2) Molina failed to remediate systemic issues and costly disruptions with critical administrative infrastructure functions including provider payment and utilization management; and (3) as a result, Molina common stock traded at artificially inflated prices during the Class Period. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on August 2, 2017, the Company withdrew its 2017 earnings outlook and announced that it will eliminate 1,500 jobs, and exit certain Obamacare markets after the health insurer posted a steep second quarter loss.
On this news, shares of Molina declined almost 6%, closing at $62.32 per share on August 3, 2017, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than June 29, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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