#USA #Class Action #Indianapolis #Securities Fraud #Elevance Health

Elevance Health Faces Securities Fraud Class Action

On May 29, 2025, Berger Montague PC announced that a securities class action lawsuit has been filed against Elevance Health, Inc. (NYSE: ELV). This legal action affects investors who purchased Elevance securities between April 18, 2024, and October 16, 2024. In light of significant stock price fluctuations alleged to be linked to misleading financial disclosures, investors are prompted to understand their rights and consider participating in the lawsuit.

Background of Elevance Health

Elevance Health is a prominent healthcare entity based in Indianapolis, Indiana, offering a variety of health insurance plans. This includes managing Medicaid benefits for eligible individuals through contracts with various states.

Historically, the company maintained a robust market position, but issues began surfacing in mid-2024. On July 17, 2024, Elevance announced expectations of increased Medicaid utilization in the second half of the year. This revelation triggered a sharp decline in the stock price, dropping $32.21 per share, or 5.8%, closing at $520.93 the same day.

Stock Price Increase and Further Disclosures

Further complicating the situation, on October 17, 2024, Elevance reported its Q3 2024 financial results. The company not only missed earnings per share (EPS) estimates by $1.33—a staggering 13.7% shortfall—but it also downgraded its EPS guidance for 2024 from $37.20 to $33.00. This adjustment indicated that issues related to Medicaid were expected to persist, resulting in an additional stock price drop of $52.61, or 10.6%, to a closing price of $444.35.

These developments raised significant concerns among investors, leading to allegations of securities fraud against Elevance Health. The class action suit seeks to hold the company accountable for the financial misrepresentations, which investors believe led to substantial losses.

Investors’ Rights and Actions

Investors who acquired Elevance securities during the defined class period are encouraged to act quickly. The deadline for filing to be appointed as a lead plaintiff in the class action is set for July 11, 2025. Being a lead plaintiff allows an investor to guide the litigation on behalf of all class members. However, participation in the lawsuit does not require individuals to actively serve as lead plaintiffs, allowing them to remain anonymous if preferred.

For more information about investor rights and participation, investors can contact Berger Montague. The firm has a strong track record in securities class action litigation and aims to protect investor interests across the United States.

For those interested, Berger Montague operates multiple offices, including locations in Philadelphia, Minneapolis, Delaware, Washington D.C., San Diego, San Francisco, and Chicago. Interested investors can reach out to Senior Counsel Andrew Abramowitz or Peter Hamner for detailed inquiries.

Conclusion

The looming securities class action against Elevance Health serves as a crucial reminder of the risks inherent in investing in healthcare stocks, especially when facing operational challenges linked to Medicaid. Investors are strongly advised to be vigilant and proactive in understanding their legal options before the impending deadline.

Contact Information:

• - Andrew Abramowitz, Senior Counsel
• - Berger Montague
• - Phone: (215) 875-3015
• - Email: [email protected]
• - Peter Hamner
• - Email: [email protected]

Elevance Health's case underscores the importance of transparency and accountability in financial disclosures, particularly within the healthcare sector.