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.

Investors who purchased or acquired Elevance securities between April 18, 2024 through October 16, 2024, may no later than July 11, 2025, seek to be appointed as a lead plaintiff representative of the class.