ELAN CLASS ACTION NOTICE: Glancy Prongay & Murray LLP Files Securities Fraud Lawsuit Against Elanco Animal Health Incorporated
LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Southern District of Indiana captioned Hunter v. Elanco Animal Health Incorporated, et al., (Case No. 20-cv-01460) on behalf of persons and entities that purchased or otherwise acquired Elanco Animal Health Incorporated (“Elanco” or the “Company”) (NYSE: ELAN) securities between January 10, 2020 and May 6, 2020, inclusive (the “Class Period”). Plaintiff pursues claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days from the date of this notice to move the Court to serve as lead plaintiff in this action.
On May 7, 2020, before the market opened, Elanco announced its first quarter 2020 financial results, reporting revenue of $657.7 million and earnings per share of -$0.12, reflecting “a reduction of approximately $60 million in channel inventory.” The Company’s Chief Executive Officer attributed the disappointing results to “distributor performance,” among other things, and stated that Elanco planned “to tighten [its] approach across many facets of [its] distributor relationships.”
On this news, the Company’s share price fell $3.05, or over 13%, to close at $19.88 per share on May 7, 2020, on unusually heavy trading volume.
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: (1) that, after consolidating its distributors from eight to four, the Company increased the amount of inventory, including companion animal products, held by each distributor; (2) that Elanco’s distributors were not experiencing sufficient demand to sell through the inventory; (3) that, as a result, the Company’s revenue was reasonably likely to decline; (4) that, as a result of the foregoing, Elanco would reduce its channel inventory with respect to companion animal products; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you purchased Elanco securities during the Class Period, you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles H. Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-801-2829, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
|Case Data Byte|
|Law Firm||Glancy Prongay & Murray LLP|
|Company Name||ProAssurance Corporation|
|Class Period||January 10, 2020 and May 6, 2020|
|Lead Plaintiff Motion Deadline||60 days from May 20 2020|
|Contact Attorney||Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067|
|Case Summary||On May 7, 2020, Elanco announced its financial and operating results for the first quarter of 2020, reporting revenue of $657.7 million and earnings per share of -$0.12, below investors’ expectations. Elanco’s President and Chief Executive Officer attributed the disappointing results to “distributor performance,” among other things, and stated that Elanco planned “to tighten [its] approach across many facets of [its] distributor relationships.”|
On this news, the Company’s share price fell $3.05 per share, or over 13%, to close at $19.88 per share on May 7, 2020, thereby injuring investors.
|About the Company||At Elanco, we advance our vision of food and companionship enriching life by developing innovative solutions that protect and enhance animal health.|
Since 1954, Elanco has been working to empower veterinarians, food producers, and all those concerned with animal health with the tools needed to help animals live healthy lives.
|Join Action Link||https://www.glancylaw.com/cases-application/case-information/elanco-animal-health-incorporated/|