Elevance Health(ELV) GlobeNewswire News Room·2025-06-12 23:14Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Elevance Health, Inc. due to allegations of violations of federal securities laws related to misleading statements about Medicaid cost trends and earnings guidance [3][5]. Group 1: Allegations and Legal Actions - The complaint alleges that Elevance and its executives made false and misleading statements regarding their monitoring of Medicaid cost trends and the adequacy of premium rates negotiated with states [5]. - The company acknowledged rising Medicaid expenses but assured investors that these were adequately reflected in their guidance for the year [5]. - A federal securities class action has been filed against Elevance, with a deadline of July 11, 2025, for investors to seek the role of lead plaintiff [3][9]. Group 2: Financial Impact and Stock Performance - On July 17, 2024, Elevance disclosed an expectation of increased second-half utilization in Medicaid, leading to a stock price decline of $32.21 per share, or 5.8% [6]. - Following the announcement of third-quarter financial results on October 17, 2024, Elevance missed consensus EPS expectations by $1.33, or 13.7%, due to elevated medical costs in its Medicaid business [7]. - The company subsequently lowered its EPS guidance for 2024 from $37.20 to $33.00, or 11.3%, resulting in a further stock price decline of $52.61 per share, or 10.6% [8].