PHILADELPHIA, May  21, 2025  (GLOBE NEWSWIRE) -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against Elevance Health, Inc. (“Elevance” or the “Company”) (NYSE: ELV) on behalf of purchasers of Elevance securities between April 18, 2024 through October 16, 2024, inclusive (the “Class Period”).

Investor Deadline: Investors who purchased or acquired Elevance securities during the Class Period may, no later than JULY 11, 2025, seek to be appointed as a lead plaintiff representative of the class. To learn your rights, CLICK HERE.

Elevance, based in Indianapolis, Ind., is a healthcare company that, among other things, provides health insurance plans to a variety of markets, including contracting with states to administer Medicaid benefits for eligible beneficiaries. States regularly conduct an eligibility review to “redetermine” whether Medicaid beneficiaries still qualify for coverage.

According to the lawsuit, throughout the Class Period, Defendants represented to investors that they were closely monitoring cost trends associated with the “redetermination” process and that the premium rates Elevance was negotiating with states were sufficient to address the cost profiles. Defendants acknowledged rising Medicaid expenses, yet assured investors that this was adequately reflected in the Company’s guidance for the year.

In truth, however, the redeterminations were causing the utilization of Elevance’s Medicaid members to rise significantly, as the members being removed from Medicaid programs were, on average, healthier than those who remained eligible for the programs. This shift was not adequately reflected in Elevance’s rate negotiations or in its financial guidance for 2024.

The truth began to emerge on July 17, 2024, when the Company revealed that it was now “expecting second-half utilization to increase in Medicaid.” In response to this disclosure, the price of Elevance common stock declined by $32.21 per share, or 5.8%, to a closing price of $520.93 per share on July 17, 2024.

Finally, on October 17, 2024, Elevance announced its financial results for Q3 2024, revealing that the Company had missed earnings per share (“EPS”) expectations for Q3 by $1.33, or 13.7%, “due to elevated medical costs in [its] Medicaid business.” Further, Elevance lowered EPS guidance for 2024 from $37.20 to $33.00, or 11.3%, as it expected these Medicaid issues to continue.

These disclosures caused the price of Elevance common stock to decline by another $52.61 per share, or 10.6%, to a closing price of $444.35 per share on October 17, 2024.

To learn your rights or for more information, CLICK HERE or please contact Berger Montague: Andrew Abramowitz at [email protected] or (215) 875-3015, or Peter Hamner at [email protected].

A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.

Contact:

Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
[email protected]

Peter Hamner
Berger Montague PC
[email protected]