NEW YORK, May 13, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of Indiana on behalf of all persons or entities who purchased or otherwise acquired Elevance Health, Inc. (“Elevance” or the “Company”) (NYSE: ELV) securities between April 18, 2024 and October 16, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.

According to the Complaint, 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. The Complaint alleges that 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. The Complaint further alleges that 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.” The Complaint also alleges that 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.”

The Complaint alleges that these representations were materially false or misleading. The Complaint alleges that 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. The Complaint further alleges that 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.

According to the Complaint, 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” and that it was “seeing signs of increased utilization across the broader Medicaid population, including in outpatient home health, radiology, durable medical equipment, as well as some elective procedures.” The Complaint alleges that in response to these disclosures, the price of Elevance common stock declined by $32.21 per share, or 5.8%, from a closing price of $553.14 on July 16, 2024, to a closing price of $520.93 on July 17, 2024.

Investors who purchased or otherwise acquired shares of Elevance should contact the Firm prior to the July 11, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.