Elevance Health, Inc.

On July 17, 2024, Elevance disclosed that it was “expecting second-half utilization to increase in Medicaid” and that it was “seeing signs of increased utilization across the broader Medicaid population, including in outpatient home health, radiology, durable medical equipment, as well as some elective procedures.”

On this news, Elevance’s stock price fell $32.21, or 5.8%, to close at $520.93 per share on July 17, 2024, thereby injuring investors.

Then, on October 17, 2024, Elevance released its third quarter 2024 financial results, missing EPS consensus estimates by 13.7% “due to elevated medical costs in [its] Medicaid business.” Additionally, the Company lowered its EPS guidance for 2024 by 11.3%.

On this news, Elevance’s stock price fell $52.61, or 10.6%, to close at $444.35 per share on October 17, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) sicker patients with higher acuity tended to remain on Medicaid after redetermination, leading to higher per-patient costs; (2) this increase in cost was occurring at a rate that was not adequately reflected in Elevance's rate negotiations with the states or in its financial guidance for 2024; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.