Investigations
Elevance Health, Inc.
Overview
Overview
- Deadline:
- Jul 11, 2025
| Company Name: | Company Name: Elevance Health, Inc. |
| Stock Symbol: | Stock Symbol: ELV |
Elevance Health, Inc. (NYSE: ELV): Elevance Health, Inc. (“Elevance” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Elevance common stock. The case is pending in the U.S. District Court for the Southern District of Indiana and is captioned Miller v. Elevance Health, Inc., et al., No. 25-cv-00923.
If you incurred losses on your investments in Elevance, you are encouraged to submit your information.
Why was Elevance Sued for Securities Fraud?
Elevance is a healthcare company that provides health insurance plans to a variety of markets. This includes contracting with states to administer Medicaid benefits.
States routinely review Medicaid eligibility, but during COVID, the federal government paused this process. The pause ended in 2023, and states resumed redetermining the eligibility of Medicaid recipients thereafter.
During the relevant period, Elevance represented that it was closely monitoring for the cost trends associated with the redetermination process and that the premium rates Elevance was negotiating with states were sufficient to address the risk and cost profiles of those patients staying on Medicaid programs.
As alleged, in truth, the redeterminations caused a significant increase in the acuity and utilization of Elevance’s Medicaid members. What’s more, the shift occurred to a degree that was not reflected in Elevance’s rate negotiations with the states or in its financial guidance for 2024.
The Stock Declines as the Truth is Revealed
On July 17, 2024, the Company revealed that “[a]s a result of redeterminations, our Medicaid membership mix has shifted, resulting in increased acuity.” Elevance stated that it was now “expecting second-half utilization to increase in Medicaid” and that it was “seeing signs of increased utilization across the broader Medicaid population.” On this news, the price of Elevance stock declined $32.21 per share, or nearly 6%, from $553.14 per share on July 16, 2024, to $520.93 per share on July 17, 2024.
Then, on October 17, 2024, Elevance announced its Q3 2024 financial results, revealing that its missed consensus earnings per share (“EPS”) expectations by $1.33, or 13.7%, “due to elevated medical costs in [its] Medicaid business.” Elevance further revealed that it was lowering EPS guidance for 2024 from $37.20 to $33.00, or 11.3%, as it expected these Medicaid issues to continue. On this news, the price of Elevance stock declined $52.61 per share, or nearly 11%, from $496.96 per share on October 16, 2024, to $444.35 per share on October 17, 2024.
What are my Rights?
If you purchased or otherwise acquired Elevance common stock, you may ask the Court no later than July 11, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Elevance, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
If you incurred losses on your investments in Elevance, you are encouraged to submit your information.
Why was Elevance Sued for Securities Fraud?
Elevance is a healthcare company that provides health insurance plans to a variety of markets. This includes contracting with states to administer Medicaid benefits.
States routinely review Medicaid eligibility, but during COVID, the federal government paused this process. The pause ended in 2023, and states resumed redetermining the eligibility of Medicaid recipients thereafter.
During the relevant period, Elevance represented that it was closely monitoring for the cost trends associated with the redetermination process and that the premium rates Elevance was negotiating with states were sufficient to address the risk and cost profiles of those patients staying on Medicaid programs.
As alleged, in truth, the redeterminations caused a significant increase in the acuity and utilization of Elevance’s Medicaid members. What’s more, the shift occurred to a degree that was not reflected in Elevance’s rate negotiations with the states or in its financial guidance for 2024.
The Stock Declines as the Truth is Revealed
On July 17, 2024, the Company revealed that “[a]s a result of redeterminations, our Medicaid membership mix has shifted, resulting in increased acuity.” Elevance stated that it was now “expecting second-half utilization to increase in Medicaid” and that it was “seeing signs of increased utilization across the broader Medicaid population.” On this news, the price of Elevance stock declined $32.21 per share, or nearly 6%, from $553.14 per share on July 16, 2024, to $520.93 per share on July 17, 2024.
Then, on October 17, 2024, Elevance announced its Q3 2024 financial results, revealing that its missed consensus earnings per share (“EPS”) expectations by $1.33, or 13.7%, “due to elevated medical costs in [its] Medicaid business.” Elevance further revealed that it was lowering EPS guidance for 2024 from $37.20 to $33.00, or 11.3%, as it expected these Medicaid issues to continue. On this news, the price of Elevance stock declined $52.61 per share, or nearly 11%, from $496.96 per share on October 16, 2024, to $444.35 per share on October 17, 2024.
What are my Rights?
If you purchased or otherwise acquired Elevance common stock, you may ask the Court no later than July 11, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Elevance, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.