Steamfitters Local 449 Pension Plan v. Molina Healthcare, Inc.

Updated: July 7, 2018

Status: Pending Court Approval

The case is Steamfitters Local 449 Pension Plan v. Molina Healthcare, Inc., No. 18-cv-03579 (C.D. Cal.). Labaton Sucharow represents lead plaintiff Steamfitters Local 449 Pension Plan.

On August 21, 2018, Labaton Sucharow LLP was named lead counsel in a securities class action lawsuit filed on behalf of Steamfitters Local 449 Pension Plan (“Steamfitters”) against Molina Healthcare, Inc. (“Molina” or the “Company”) and certain of its senior executives (collectively, “Defendants”).  The action 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.

 

Molina provides managed health care services under the Medicaid and Medicare programs and Patient Protection and Affordable Care Act health insurance marketplaces (“ACA Health Exchanges”).  Molina’s health plans are operated by various wholly owned subsidiaries, each of which is licensed as a health maintenance organization (“HMO”).  The Action arises out of Defendants’ allegedly false and misleading representations concerning the scalability of the Company’s “administrative infrastructure” throughout the Class Period, which Defendants claimed had the capacity to support anticipated growth for Molina in both Medicaid markets and ACA Health Exchanges. Lead Plaintiff alleges that the market learned the “truth” regarding Molina’s administrative infrastructure through a series of partial disclosures beginning on April 28, 2016, and ending on August 2, 2017, which disclosures allegedly caused drops in the price of Molina’s shares.

 

Steamfitters filed the operative Amended Class Action Complaint for Violation of the Federal Securities Laws (the “Complaint”) on October 5, 2018.  Defendants filed a motion to dismiss the Complaint on October 19, 2018, and Lead Plaintiff filed a memorandum of law in opposition to the motion on November 9, 2018.  On December 13, 2018, the Court issued an Order granting Defendants’ motion and dismissing the Complaint with prejudice.

 

On January 9, 2019, Lead Plaintiff appealed from the Order to the United States Court of Appeals for the Ninth Circuit.  The Parties fully briefed the appeal, and during the pendency of the appeal, the Parties agreed to a resolution of the Action.  On May 5, 2020, the Parties executed the Settlement Agreement, which sets forth the final terms and conditions of the Settlement.

 

The case is Steamfitters Local 449 Pension Plan v. Molina Healthcare, Inc., No. 18-cv-03579 (C.D. Cal.).  Labaton Sucharow represents lead plaintiff Steamfitters Local 449 Pension Plan.

 

Submit Claim Form

 

If you purchased or otherwise acquired the publicly traded common stock of Molina Healthcare, Inc. during the period from October 31, 2014 through August 2, 2017, inclusive, you may be entitled to a payment from a class action settlement. To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by October 17, 2020.

                                                                                          

Settlement Hearing

 

A Settlement Hearing will be held on October 22, 2020 at 10:00 am before the Honorable André Birotte Jr., at in Courtroom 7B at the United States District Court for the Central District of California, First Street U.S. Courthouse, 350 West First Street, Los Angeles, CA 90012.

 

If you have questions about the Settlement, please contact Labaton Sucharow at settlementquestions@labaton.com or 1-888-219-6877, or contact the Claims Administrator at (844) 909-3057 or visit the Settlement website at www.MolinaHealthcareSecuritiesSettlement.com.