Core Viewpoint - A lawsuit has been filed against Elevance Health, Inc. and certain senior executives for potential violations of federal securities laws, specifically related to the management of Medicaid benefits and financial disclosures [1][2]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Southern District of Indiana, captioned Miller v. Elevance Health, Inc., et al., No. 25-cv-0092 [2]. - Investors have until July 11, 2025, to request to be appointed to lead the case [2]. Group 2: Company Operations and Allegations - Elevance provides health insurance plans, including contracts with states to administer Medicaid benefits [3]. - The federal government paused Medicaid eligibility reviews during COVID, which resumed in 2023, leading to increased acuity and utilization among Elevance's Medicaid members [3][5]. - Elevance had previously claimed to be monitoring cost trends and negotiating sufficient rates for Medicaid patients, which was later alleged to be misleading [4]. Group 3: Stock Performance and Financial Impact - Following a statement on July 17, 2024, regarding increased Medicaid utilization, Elevance's stock price fell by $32.21, nearly 6%, from $553.14 to $520.93 per share [6]. - On October 17, 2024, Elevance reported Q3 2024 results, missing consensus EPS expectations by $1.33 (13.7%) due to elevated medical costs in its Medicaid business, resulting in a stock decline of $52.61, nearly 11%, from $496.96 to $444.35 per share [7].

Core Viewpoint - Elevance Health's shares have decreased by 27% over the past year, significantly underperforming the broader market over the last 1, 3, and 5 years [1]. Group 1 - The stock's underperformance is attributed to various reasons that are not detailed in the provided content [1].

Core Viewpoint - Investors in Elevance Health, Inc. have the opportunity to lead a securities fraud class action lawsuit due to substantial losses incurred as a result of misleading statements made by the company regarding its financial guidance and operational costs [1][3]. Summary by Sections Lawsuit Details - The lawsuit alleges that between April 18, 2024, and October 16, 2024, Elevance Health failed to disclose critical information to investors, including the fact that sicker patients with higher acuity remained on Medicaid after redetermination, leading to increased per-patient costs [3]. - It is claimed that the rise in costs was not adequately reflected in Elevance's rate negotiations with states or in its financial guidance for 2024, resulting in materially misleading statements about the company's business and prospects [3]. Participation Information - Investors who suffered losses in Elevance Health are encouraged to contact the Law Offices of Howard G. Smith before July 11, 2025, to participate in the ongoing lawsuit [2]. - Interested parties can reach out via email, phone, or the law firm's website for more information regarding their legal rights and the class action [4][5].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Elevance Health, Inc. due to allegations of false and misleading statements regarding Medicaid cost trends and earnings guidance, which led to significant stock price declines [3][5][6]. Group 1: Allegations and Financial Impact - The complaint alleges that Elevance and its executives violated federal securities laws by making false statements about monitoring cost trends and the adequacy of premium rates for Medicaid patients [5]. - On July 17, 2024, Elevance disclosed an expected increase in Medicaid utilization, resulting in a stock price decline of $32.21 per share, or 5.8% [6]. - On October 17, 2024, Elevance reported third-quarter earnings that missed consensus EPS expectations by $1.33, or 13.7%, due to elevated medical costs in its Medicaid business, leading to a further stock price decline of $52.61 per share, or 10.6% [7][8]. Group 2: Legal Proceedings and Investor Actions - Investors who suffered losses in Elevance between April 18, 2024, and October 16, 2024, are encouraged to discuss their legal rights and options with Faruqi & Faruqi [1][3]. - There is a deadline of July 11, 2025, for investors to seek the role of lead plaintiff in the federal securities class action against Elevance [3]. - Any member of the putative class can move the court to serve as lead plaintiff or remain an absent class member without affecting their ability to share in any recovery [9].

Core Viewpoint - Elevance Health, Inc. is trading at a discount with a forward 12-month P/E ratio of 10.35X, below its five-year median of 13.46X and the industry average of 13.86X, indicating attractive valuation compared to peers [1][2] Group 1: Growth Drivers - Elevance is positioned for sustained growth through strategic initiatives in its commercial and government segments, with commercial memberships growing 4.6% and 1% year-over-year in 2024, and a notable 14.2% increase in its Individual Commercial business in Q1 2025 [4][5] - The company has streamlined its government business by exiting underperforming markets, enhancing efficiency and potential for growth in Medicare Advantage in underpenetrated states [5] - Elevance's Return on Invested Capital stands at 9.94%, significantly above the industry average of 5.79%, showcasing superior capital deployment capabilities [6] Group 2: Shareholder Returns - The company is committed to returning capital to shareholders, having repurchased $880 million worth of shares in Q1 2025, with $8.4 billion remaining under its buyback authorization, and a dividend yield of 1.82%, exceeding the industry average of 1.40% [7] Group 3: Market Performance - Despite broader market challenges, Elevance shares have gained 1.9% year-to-date, outperforming both the industry and the S&P 500, while peers UnitedHealth and Humana have experienced declines [8] Group 4: Financial Estimates - The Zacks Consensus Estimate for Elevance's EPS indicates a 4.2% increase for 2025 and a 13.8% increase for 2026, with revenue estimates suggesting an 11.2% increase for 2025 and a 7.1% increase for 2026 [11] Group 5: Challenges and Risks - Elevance faces challenges including a decline in Medicaid and Medicare Supplement membership, which could lead to overall membership losses and reduced revenues [12] - Rising medical costs are a significant concern, with the benefit expense ratio increasing from 87% in 2023 to an estimated 88.7% in 2025, indicating pressure on earnings [13] - Regulatory uncertainties, particularly related to the Pharmacy Benefit Management industry, pose additional risks for Elevance [14]

Core Viewpoint - A securities class action lawsuit has been filed against Elevance Health, Inc. for alleged misrepresentation of financial conditions during the Class Period from April 18, 2024, to October 16, 2024 [1][2]. Company Overview - Elevance Health, Inc. is a healthcare company based in Indianapolis, providing health insurance plans and administering Medicaid benefits for eligible beneficiaries [3]. Allegations and Financial Impact - The lawsuit claims that Elevance misled investors about its monitoring of cost trends related to the Medicaid "redetermination" process, assuring them that premium rates were sufficient despite rising Medicaid expenses [4]. - The redetermination process led to a significant increase in the utilization of Medicaid members, as healthier members were being removed from the program, which was not reflected in Elevance's financial guidance or rate negotiations [5]. - On July 17, 2024, Elevance disclosed an expected increase in Medicaid utilization, resulting in a stock price drop of $32.21 per share, or 5.8%, closing at $520.93 [6]. - On October 17, 2024, Elevance reported Q3 2024 earnings, missing EPS expectations by $1.33, or 13.7%, and lowered its EPS guidance for 2024 from $37.20 to $33.00, or 11.3%, due to ongoing Medicaid issues [7]. - Following this announcement, Elevance's stock price fell by $52.61 per share, or 10.6%, closing at $444.35 [8].

Core Viewpoint - A class action lawsuit has been filed against Elevance Health, Inc. for allegedly failing to disclose the impact of Medicaid redetermination on its business prospects, leading to significant financial misrepresentation [1][2]. Group 1: Allegations and Impact - The lawsuit claims that Elevance Health misled investors by stating that they were monitoring Medicaid cost trends and that premium rates were sufficient to manage risks, despite rising Medicaid expenses [2]. - The company allegedly failed to disclose that the Medicaid redetermination process was resulting in a higher acuity and utilization of its Medicaid members, which was not reflected in their financial guidance for 2024 [2]. - Following the revelation of increased utilization expectations in the Medicaid sector, Elevance's stock price dropped by $32.21 per share, or 5.8%, indicating a significant market reaction to the disclosed information [3]. Group 2: Legal Proceedings - Shareholders interested in participating in the class action must file their papers by July 11, 2025, to serve as lead plaintiff, representing the interests of other class members [4]. - Shareholders are not required to participate in the case to be eligible for recovery, allowing them to remain absent class members if they choose [4]. Group 3: Company Background - Robbins LLP, the law firm handling the case, has been focused on shareholder rights litigation since 2002, aiming to help shareholders recover losses and improve corporate governance [5].

NEW YORK, May 27, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Elevance Health, Inc. (NYSE: ELV) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Elevance you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/elevance-health-inc. Investors have until July 11, 2025, to ask the Court to be appointed to ...

Core Viewpoint - A lawsuit has been filed against Elevance Health, Inc. and certain senior executives for potential violations of federal securities laws, specifically related to the management of Medicaid benefits during the COVID-19 pandemic [1][2]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Southern District of Indiana, captioned Miller v. Elevance Health, Inc., et al., No. 25-cv-0092 [2]. - Investors who purchased Elevance common stock are encouraged to seek additional information and may have until July 11, 2025, to request to lead the case [2]. Group 2: Background on Medicaid Management - Elevance provides health insurance plans, including contracts with states to administer Medicaid benefits [3]. - The federal government paused Medicaid eligibility reviews during COVID-19, which resumed in 2023, leading to increased acuity and utilization among Elevance's Medicaid members [3][5]. Group 3: Financial Impact and Stock Performance - Elevance had previously stated it was monitoring cost trends related to Medicaid redetermination, claiming that negotiated rates were sufficient [4]. - Following the announcement of increased utilization in Medicaid on July 17, 2024, Elevance's stock price fell by $32.21, nearly 6%, from $553.14 to $520.93 per share [6]. - On October 17, 2024, Elevance reported Q3 2024 results, missing EPS expectations by $1.33 (13.7%) due to elevated medical costs, resulting in a stock price decline of $52.61, nearly 11%, from $496.96 to $444.35 per share [7].

Core Viewpoint - UnitedHealth Group and Elevance Health are two leading healthcare plan providers in the U.S., both recognized for their scale, diversified offerings, and solid financial performance, making them attractive defensive investments in volatile markets [1][2]. Group 1: UnitedHealth Group (UNH) - UnitedHealth is a dominant player in the industry, benefiting from its extensive scale and operational efficiency through its Optum unit, which supports its resilience against macroeconomic pressures [3]. - The company has faced significant challenges, with its market cap dropping from $566.7 billion in November 2024 to $269.1 billion currently, alongside missing earnings and revenue estimates due to lower premiums and high medical costs [4]. - A leadership change has occurred, with CEO Andrew Witty stepping down and former CEO Stephen Hemsley returning, amidst a criminal investigation related to potential Medicare fraud, raising investor concerns [5]. - Despite these challenges, UnitedHealth's diversification across various insurance segments and consistent free cash flow provide a buffer against sector-specific risks, with a dividend yield of 2.83% [6]. Group 2: Elevance Health (ELV) - Elevance Health, while smaller, is demonstrating stronger operational momentum, particularly in government-backed plans like Medicaid and Medicare Advantage [7]. - The company outperformed estimates in its latest quarterly report, with a 14.5% year-over-year increase in premiums to $40.9 billion, and improved operating expense ratio of 10.9% compared to UNH's 12.4% [8][9]. - Elevance's long-term debt to capital ratio of 39.7% is lower than UnitedHealth's 42.7%, indicating less leverage and lower vulnerability to high-interest rates [10]. Group 3: Comparative Analysis - Zacks Consensus Estimates currently favor Elevance, with upward revisions in EPS estimates for the current year, while UnitedHealth has seen multiple downward revisions [11]. - In terms of valuation, Elevance trades at a forward P/E of 10.60, compared to UnitedHealth's 11.76, suggesting a more attractive risk-reward profile for Elevance [12]. - Year-to-date, Elevance shares have gained 4.2%, outperforming both the industry and S&P 500, while UnitedHealth shares have declined by 41.4% due to concerns over medical costs and investigations [14]. Conclusion - Both companies are established players in the healthcare sector, with UnitedHealth offering scale and diversification but facing short-term challenges, while Elevance shows stronger execution and a more favorable growth narrative [16]. - Elevance Health is positioned as the more promising investment opportunity currently, supported by better valuation, earnings revisions, and price performance [17].