Case Page

 

Case Status:    DISMISSED    
On or around 11/17/2006 (Court's order of dismissal)

Filing Date: July 27, 2005

On November 17, 2006 the judge granted defendants' motion to dismiss the complaint. Plaintiff's have not appealed the decisions and the case has been closed.

According to the Company’s Form 10-Q for the quarterly period ended September 30, 2006, the class action complaints were consolidated into a single consolidated action, Case No. CV 05-5460 GPS (SHx) (the “Class Action”), and a lead plaintiff was appointed. On March 13, 2006, the lead plaintiff filed its consolidated complaint. On May 1, 2006, the defendants filed a motion to dismiss the consolidated complaint for failure to state a claim upon which relief can be granted, and the motion has been fully briefed by the parties. On July 27, 2006, the federal court judge vacated the hearing on the motion and took the motion under submission.

The original complaint charges Molina Healthcare and certain of its officers with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that as the Company aggressively expanded through acquisitions, Molina Healthcare underestimated the financial impact of absorbing new members and failed to close favorable contracts with providers; (2) that as a result of the foregoing the Company experienced significant increases in medical costs; (3) that the Company failed to identify and mitigate the impact of higher-than-expected catastrophic cases and increased maternity costs; and (4) as such, defendants' positive statements regarding the Company's outlook were lacking in any reasonable basis when made.

The complaint further alleges that on or around July 20, 2005, after the market closed, Molina Healthcare slashed its forecast for 2005, blaming rising medical costs, and said it expects a loss in the range of 15 to 20 cents per share for the second quarter. More specifically, Molina Healthcare cut its earnings forecast to 73 cents to 80 cents per share for the full year, from a prior $2.40 to $2.45 per share. On news of this, shares of Molina Healthcare fell $20.00 per share, or 43.48 percent, to close at $26.00 per share on unusually heavy trading volume.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Accident & Health)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MOH
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: C.D. California
DOCKET #: 05-CV-5460
JUDGE: Hon. George P. Schiavelli
DATE FILED: 07/27/2005
CLASS PERIOD START: 11/03/2004
CLASS PERIOD END: 07/20/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  2. Finkelstein, Thompson & Loughran
    1050 30th Street, NW, Finkelstein, Thompson & Loughran, DC 20007
    202.337.8000 202.337.8090 · contact@ftllaw.com
  3. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 · info@glrslaw.com
  4. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  5. Paskowitz & Associates
    60 East 42nd Street, 46th Floor, Paskowitz & Associates, NY 10165
    212.685.0969 212.685.2306 · classattorney@aol.com
  6. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  7. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 05-CV-5460
JUDGE: Hon. George P. Schiavelli
DATE FILED: 03/13/2006
CLASS PERIOD START: 11/03/2004
CLASS PERIOD END: 07/20/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  3. Lim, Ruger & Kim, LLP
    1055 West Seventh Street, Suite 2800, Lim, Ruger & Kim, LLP, CA 90017
    213-955-9500 213-955-9511 · info@lrklawyers.com
  4. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
No Document Title Filing Date