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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of October 17, 2020 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
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June 18, 2020 - The court preliminarily approved the settlement.
May 5, 2020 - A stipulation and agreement of settlement was entered by the parties.
April 27, 2018 - An investor in shares of Molina Healthcare Inc (NYSE: MOH) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Molina Healthcare Inc in connection with certain allegedly false and misleading statements made between October 31, 2014 and August 2, 2017.
Long Beach, CA based Molina Healthcare Inc offers Medicaid-related solutions for low-income families and individuals, and assists government agencies in their administration of the Medicaid program. Molina Healthcare Inc reported that its annual Total Revenue rose from over $14.17 billion in 2015 to over $17.78 billion in 2016 and that its Net Income declined from $143.00 million in 2015 to $52.00 million in 2016. Shares of Molina Healthcare Inc (NYSE: MOH) reached as high as $72.79 per share on July 21, 2017.
On August 2, 2017, Molina Healthcare Inc 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. Shares of Molina Healthcare Inc (NYSE: MOH) declined to as low as $57.10 per share on August 11, 2017. According to the complaint the plaintiff alleges on behalf of purchasers of Molina Healthcare Inc (NYSE: MOH) common shares between October 31, 2014 and August 2, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between October 31, 2014 and August 2, 2017, Molina Healthcare Inc misled investors regarding the scalability of its existing administrative infrastructure, that Molina Healthcare Inc executives falsely claimed that the Company’s existing administrative infrastructure could 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, and that Molina Healthcare Inc later admitted that its existing administrative infrastructure was built for a “much smaller, simpler business” and was “never” designed to support the Company’s growth strategy.