FTL Announces Investigation of Molina Healthcare, Inc. WASHINGTON, July 29 /PRNewswire/ -- The law firm of Finkelstein, Thompson & Loughran announces that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of all persons who purchased the securities of Molina Healthcare, Inc. (NASDAQ:MOH) ("Molina Healthcare" or the "Company") between November 3, 2004 and July 20, 2005, inclusive (the "Class Period"). Finkelstein, Thompson & Loughran is investigating similar claims at this time and welcomes inquiries from potential class members concerning their rights and interests in this matter. The lawsuit alleges that Molina Healthcare violated federal securities laws by issuing false or misleading public statements. Specifically, the complaint alleges that Molina Healthcare: (1) expanded rapidly through acquisitions and underestimated the financial impact of assimilating its acquisitions, while failing to make favorable contracts with various providers; (2) the acquisitions and unfavorable contracts resulted in significant increases in healthcare costs; (3) failed to account for and efficiently counteract a higher than expected number of catastrophic cases, increased maternity costs and an increase in outpatient services; (4) and that as a result of the foregoing, the Company's forecasts were lacking in any reasonable basis when made. On July 20, 2005, the Company announced a revision of its full year earnings forecast, dropping its previous estimate of $2.40 to $2.45 per share, downward to between $0.73 to $0.80 per share. Further, Molina Healthcare announced that it expects a second quarter loss of between $0.15 to $0.20 per share. In reaction to this news, the Company's share price dropped from $46.00 on July 20, 2005, to $26.00 on July 21, 2005 -- constituting a decline of nearly 44% in a single day. If you are a member of the class, you may, no later than September 26, 2005, request that the Court appoint you as a lead plaintiff. A lead plaintiff is a class member appointed by the Court to direct the litigation on behalf of the class. Although a class member need not be appointed as a lead plaintiff to receive a proportionate share of any proceeds of the litigation, lead plaintiffs make important decisions that could affect the prosecution of the class claims, including decisions concerning settlement. The securities laws create a rebuttable presumption that the plaintiff with the largest financial interest in the litigation is the most adequate to serve as a lead plaintiff. With offices in Washington, DC and San Francisco, CA, Finkelstein, Thompson & Loughran has spent almost three decades delivering outstanding representation to institutional and individual clients in connection with securities and other finance-related litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, in the past ten years, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers. If you have any questions concerning this press release or your rights or interests, please contact Finkelstein, Thompson & Loughran's Washington, DC office, toll-free, at 1-877-337-1050, by email at , or by submitting an inquiry form located at http://www.ftllaw.com/news/releases/050729Molina.html. DATASOURCE: Finkelstein, Thompson & Loughran CONTACT: Donald J. Enright, Esq. of Finkelstein, Thompson & Loughran, +1-202-337-8000 Web site: http://www.ftllaw.com/

Copyright