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Investors Take Note: Class Action Lawsuit Against Elevance Health

Berger Montague PC has issued an urgent notice to investors regarding a securities class action lawsuit filed against Elevance Health, Inc., a healthcare company traded on the New York Stock Exchange under the ticker symbol ELV. This lawsuit specifically pertains to investments made between April 18, 2024, and October 16, 2024, which represents a critical class period for affected investors.

Key Details of the Lawsuit

The lawsuit claims that throughout the defined class period, Elevance misrepresented its handling of rising costs associated with the Medicaid ‘redetermination’ process. Investors were led to believe that the company was diligently monitoring these cost trends and that the premium rates negotiated with various states were sufficient to cover the rising expenses. However, evidence suggests that the company’s financial guidance was not reflective of the actual utilization trends affecting its Medicaid services.

Understanding the Medicaid Impact

A key issue highlighted in the lawsuit was that as states conducted eligibility reviews for Medicaid, healthier members were often removed from the program, leading to skewed averages—that is, the remaining members were less healthy and thus incurred higher medical expenses. Even though Elevance acknowledged increasing costs, it failed to adequately adjust its financial forecasts and rate negotiations, which ultimately misled investors about the company’s financial health.

The situation escalated dramatically on July 17, 2024, when Elevance announced an unexpected increase in Medicaid utilizations for the second half of the fiscal year. The revelation that Elevance had underestimated these costs resulted in a significant drop in the company's stock price—by $32.21, or about 5.8%, closing at $520.93 per share.

Financial Disclosures Raise Further Concerns

The downward trend continued when, on October 17, 2024, Elevance announced its Q3 earnings results, revealing that it missed EPS expectations by $1.33, which is a staggering 13.7% shortfall due to unforeseen elevated medical costs within its Medicaid sector. Furthermore, the company lowered its EPS guidance for the year from $37.20 to $33.00. Following this announcement, Elevance’s stock price fell further, plummeting by $52.61—or 10.6%—resulting in a closing price of $444.35 per share.

Actions for Investors

The opportunity for investors to participate in the class action lawsuit is closing soon, with July 11, 2025, marking the crucial deadline to seek lead plaintiff status. Interested parties should engage with Berger Montague to understand their rights and options. The lead plaintiff typically represents all class members and directs the litigation process. Investors do not need to be a lead plaintiff to benefit from any potential recovery achieved through the case.

Berger Montague, with a robust history of securities litigation since its inception in 1970, has dedicated decades to defending the interests of both individual and institutional investors across the United States. Investors seeking more information or assistance can contact Andrew Abramowitz or Peter Hamner from the firm directly.

As the deadline rapidly approaches, it is crucial for Elevance investors to act swiftly to protect their investments and ensure that their voices are heard in this pivotal litigation process. The ongoing developments signify an important chapter for many investors affected by these alleged misrepresentations by Elevance Health.

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For further details or to get in touch with Berger Montague, reach out via email or phone. Don’t miss this critical opportunity to make your voice heard within this important legal framework.