Class Action Lawsuits Target Elanco, Elevance Health Over Securities Claims

Elanco has requested the dismissal of a securities class action lawsuit filed by investors following its June 2024 disclosure of FDA-mandated boxed warnings and product approval delays for Zenrelia and Credelio Quattro, which caused a significant stock drop. Meanwhile, Elevance Health, Inc. faces multiple securities fraud lawsuits alleging that the company misrepresented the impact of Medicaid eligibility redeterminations on its financial outlook. Despite Elevance's claims of closely monitoring cost trends and negotiating adequate rates, the redeterminations led to increased utilization and acuity among Medicaid members, not reflected in the company’s guidance. Elevance disclosed these issues in July and October 2024, resulting in substantial stock price declines and missed earnings expectations. Investors who purchased Elevance securities during the relevant period have until July 11, 2025, to seek appointment as lead plaintiffs in ongoing federal lawsuits. Both Elanco and Elevance cases underscore significant investor concerns about corporate disclosures and financial transparency in the healthcare sector.