A securities class action has been filed against Elevance Health, Inc. (ELV) on behalf of all purchasers of Elevance common stock between April 18, 2024 through October 16, 2024. This case has been filed in the USDC – SDIN.

Throughout the Class Period, with the Medicaid redetermination process nearly complete, 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 risk and cost profiles of those patients staying on Medicaid programs. While Defendants acknowledged that Medicaid expenses were rising, they repeatedly assured investors that this was adequately reflected in the Company’s guidance for the year. Defendants maintained they had “visibility into 75% of our Medicaid rates and premiums for 2024” and that “[t]he vast majority of those are in line with our expectations and they’re actuarially sound.” Defendants further reassured investors that “we’re intentionally remaining thoughtful and prudent in our outlook,” and that, while the Company was seeing an acuity mix shift in the Medicaid business, it was “nothing outside of the bounds of what we’ve expected and guided for.”

These representations were materially false or misleading.  In truth, the redeterminations were causing the acuity and 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 occurring to a degree that was not reflected in Elevance’s rate negotiations with the states or in its financial guidance for 2024.

As a result of Defendants’ wrongful acts and omissions, and the precipitous declines in the market value of Elevance common stock when the truth was revealed, Plaintiff and other Class members have suffered significant losses and damages.