NEW YORK, May 11, 2018 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Molina Healthcare, Inc. (“Molina” or the “Company”) (NYSE: MOH ) and certain of its officers, on behalf of shareholders who purchased or otherwise Molina securities between October 31, 2014 and August 2, 2017, both dates inclusive. Such investors are encouraged to join this case by visiting the firm’s site: http://www.bgandg.com/moh .
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:(1) Molina’s administrative infrastructure was never designed to handle the size and complexity of its rapid growth strategy; and (2) it failed to remediate systemic issues and costly disruptions with critical administrative infrastructure functions, including provider payment and utilization management.
On April 28, 2016, Molina reported that it had missed its earnings targets for the quarter ended March 31, 2016 and sharply cut full-year 2016 earnings guidance, citing higher costs tied to administrative capacity issues. On this news, Molina’s share price fell $12.46, or 19.4%, to close at $51.76 on April 29, 2016. On February 15, 2017, Molina announced its financial and operating results for the quarter and year ended December 31, 2016, advising investors that the Company could not commit to Affordable Care Act (“ACA”) Health Exchange participation beyond 2017. On this news, Molina’s share price fell $10.71, or 17.88%, to close at $49.18 on February 16, 2017. Then, on August 2, 2017, Molina announced its financial and operating results for the quarter ended June 30, 2017, reporting 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. During the Company’s related earnings call, Molina disclosed to investors that its administrative infrastructure was inadequate to sustain Molina’s rapid growth. On this news, Molina’s share price fell $3.92, or 5.92%, to close at $62.32 on August 3, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: http://www.bgandg.com/moh or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Molina you have until June 29, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com
