Any news on what is happening with the Class Action suit that basically alleges Molina mismanaged itself into it's dire state? Curious how this will play out and how much the pay out will be. This could potentially create a massive drain on Molina resources. For everyone who thinks Molina is a takeover target, maybe it isn't going to make it that far. Also...this suit is 100% based on the awful management and the terrible decisions made. Certainly not a great advert for a takeover or for being a great place to work. Thoughts?
REFRESHER (from Business Wire on June 25, 2018):
There was a June 29, 2018 deadline to file a lead plaintiff motion in the class action filed on behalf of investors that purchased MOH securities between October 31, 2014 and August 2, 2017.
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 Molina shares fell nearly 6%, or $3.92 per share, to close at $62.32 per share on August 3, 2017. The Company’s shares continued to fall the following trading day, closing down $2.52 per share, or over 4%, to close at $59.80 per share on August 4, 2017. The complaint filed in this class action 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.