Molina Healthcare Hit With Class Action Lawsuits For Deceiving Shareholders In Lying About The Financial State Of The Company Then Losing Nearly $1 Billion Dollars

May 15. 2018

Molina Healthcare

[This is a follow up to the boycott I called for last year against Molina Healthcare (I Do Not Recommend Using Molina Healthcare Who Are Cutting Corners And Killing Patients In The Process and BOYCOTT: Molina Healthcare Stock Downgraded And CEO Sells 15,000 Stocks Cashing Out $1,000,000 and Remember To Switch From Molina Healthcare This Enrollment Period and Molina Healthcare Posts $612 Million In Losses, Loses Two Big Contracts And A Lawsuit Against The Government].

Securities class action lawsuits have been filed against Molina Healthcare for lying about the company's growth, then incurring massive financial losses over the past year. The first class action lawsuit was filed by the law firm of Labaton Sucharow LLP in California. The second class action lawsuit was filed by the law firm of Levi & Korsinsky LLP in New York.

The lawsuits revealed Molina induced people to buy shares by presenting false data on the company's financial plans, assets and projected growth. Molina's response to the claims is astonishing and incriminating, as they stated the financial plans they pitched to prospective shareholders, who bought into their lies and purchased stock in the company, was not meant to be taken seriously. However, under SEC rules that constitutes fraud and misrepresentation.

People invested due to the false data and promises of financial growth from Molina. Then the company sustained a $230,000,000 loss over ObamaCare in 2017. Then, this year, Molina posted $612,000,000 in losses as of March 2018 (Molina Healthcare Posts $612 Million In Losses, Loses Two Big Contracts And A Lawsuit Against The Government). Molina's stock price dropped due to the financial losses, which continue to accumulate, heading towards $1 billion dollars lost. These are SEC violations on Molina's part.

Molina is being sued by many people for non-payment of bills and on bad faith insurance claims, regarding customers who were denied medical benefits they were entitled to under healthcare law and Medicare and Medicaid rules. Molina's bad faith conduct led to patients dying in what was preventable deaths. 

Rather than settle their lawsuits, which could be resolved at reasonable rates, they obstinately refuse and continue to war against hospitals and members of the public they have cost their loved ones. People have incurred great financial harm because of Molina and sued them with good reason, as seen with the 9 Florida hospitals that have sued Molina for $88,000,000 in non-payment of outstanding medical bills. The U.S. government, in the form of Medicare and Medicaid gave Molina money for patients bills, then they refused to pay the hospitals in various U.S. states.

The aforementioned lawsuits against Molina create bad publicity and scares the public off joining Molina Healthcare. In short, it is not savvy and is quite unwise. Molina is getting some very crappy business, legal and PR advice and it is going to destroy the company. Ironically, some of the bad advice is coming from the Federal Bureau of Investigation (FBI) who have no business in Molina's business and Congress is going to pick the matter up one day in a ugly hearing. Select federal agents and officials will be unable to explain why they criminally meddled in healthcare.

Is there any wonder the FBI doesn't have the time to catch criminals (FBI Makes Deceitful Claim They Could Not Find School Shooter Nikolas Cruz 5-Months Ago With Credible Tip From You Tube Page and The FBI Ignored Second Credible Tip That Florida School Shooter Nikolas Cruz Was Going To Kill Innocent People). They're too busy spying on people they're not supposed to and meddling in companies like Molina and Facebook, among others, which is strictly forbidden under their Congressional mandate. These are criminal offenses.

STORY SOURCE

SHAREHOLDER ALERT: Levi & Korsinsky, LLP Notifies Shareholders of Molina Healthcare, Inc. of a Class Action Lawsuit and a Lead Plaintiff Deadline of June 29, 2018 – MOH

May 14, 2018 16:01 ET | Source: Levi & Korsinsky, LLP - NEW YORK, May 14, 2018 (GLOBE NEWSWIRE) -- The following statement is being issued by Levi & Korsinsky, LLP: To: All persons or entities who purchased or otherwise acquired securities of Molina Healthcare, Inc. ("Molina Healthcare, Inc.") (NYSE:MOH) between October 31, 2014 and August 2, 2017. You are hereby notified that a securities class action lawsuit has been commenced in the United States District Court for the Central District of California. To get more information go to:

http://www.zlk.com/pslra-d/molina-healthcare-inc?wire=3 or contact Joseph E. Levi, Esq. either via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500, toll-free: (877) 363-5972. There is no cost or obligation to you.

The complaint alleges that throughout the class period Defendants issued materially false and/or 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 an earnings miss for the first quarter ended March 31, 2016 and reduced its full-year 2016 earnings guidance. On August 2, 2017, Molina withdrew its 2017 earnings projection, reported a net loss of $230 million for the second quarter ended June 30, 2017, and revealed it would exit certain ACA Health Exchange markets.

If you suffered a loss in Molina Healthcare, Inc. 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. Levi & Korsinsky is a national firm with offices in New York, California, Connecticut, and Washington D.C. The firm’s attorneys have extensive expertise and experience representing investors in securities litigation, and have recovered hundreds of millions of dollars for aggrieved shareholders. Attorney advertising. Prior results do not guarantee similar outcomes...

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Labaton Sucharow LLP Files Securities Class Action Lawsuit on Behalf of Molina Healthcare, Inc. Investors

April 30, 2018 13:39 ET | Source: Labaton Sucharow LLP - NEW YORK, April 30, 2018 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP (“Labaton Sucharow”) announces that on April 27, 2018, it filed a securities class action lawsuit on behalf of its client Steamfitters Local 449 Pension Plan (“Steamfitters 449”) against Molina Healthcare, Inc. (“Molina” or the “Company”) (NYSE:MOH), and certain of its senior executives (collectively, “Defendants”).

The action, which is captioned Steamfitters Local 449 Pension Plan v. Molina Healthcare, Inc., No. 18-cv-03579 (C.D. Cal.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired Molina common stock between October 31, 2014 and August 2, 2017, inclusive (the “Class Period”).

Molina is a managed care company, focused on 4.5 million members eligible for Medicaid, Medicare, and other government-sponsored healthcare programs. Molina’s health plans are operated by various wholly-owned subsidiaries, each of which is licensed as a health maintenance organization (HMO). During the Class Period, Molina misled investors regarding the scalability of its existing administrative infrastructure. Molina 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. Molina 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.

The truth regarding Molina’s failed growth strategy and inadequate administrative infrastructure was revealed through a series of disappointing financial results, culminating on August 2, 2017, when the Company reported 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 related earnings call, Molina revealed that its administrative infrastructure was never designed to sustain such rapid growth. On this news, Molina’s common stock price fell $3.92 per share, or 5.92 percent, to close at $62.32 per share on August 3, 2017.

If you purchased or acquired Molina common stock during the Class Period, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Central District of California no later than June 29, 2018. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.

If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at fmcconville@labaton.com. You can view a copy of the complaint online at, http://www.labaton.com/en/cases/Steamfitters-Local-449-Pension-Plan-v-Molina-Healthcare-Inc.cfm.

Steamfitters 449 is represented by Labaton Sucharow, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $2 trillion. Labaton Sucharow’s litigation reputation is built on its half-century of securities litigation experience, more than 60 full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, Washington, D.C., and Chicago, IL. More information about Labaton Sucharow is available at www.labaton.com.

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