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ELV.US
id: 1593
Elevance Health ($ELV) Medicaid Cost Surge and Misleading Forecasts Case
Investors can submit applications for the lead plaintiff role.
S.D. Indiana
Court1:25-cv-00923
Case number04/18/2024
Class period Start10/16/2024
Class period End07/11/2025
Lead Plaintiff motion deadline- $ELV investors filed a claim against Elevance Health for hiding the financial impact of rising costs tied to Medicaid redeterminations and overstating its earnings guidance.
- After missing Q3 earnings and slashing full-year guidance, $ELV dropped 10.6% on October 17, 2024.
Case Details:
Between April 18, 2024 and October 16, 2024, Elevance told investors it was closely tracking Medicaid cost trends and had built them into its 2024 financial guidance. Executives said they had visibility into 75% of Medicaid rates and claimed the cost impact of redeterminations was in line with expectations. The company reaffirmed its full-year earnings forecast of $37.20 per share, despite reporting early signs of rising utilization in July 2024.
However, behind the scenes, the redetermination process was causing a shift in membership—healthier members were leaving Medicaid, while sicker, higher-cost patients were staying. Elevance failed to adjust its pricing models or guidance to reflect this change. Analysts later said the company had been caught off guard while competitors had issued earlier warnings.
On October 17, 2024, Elevance reported Q3 earnings that missed expectations by $1.33 per share and cut full-year guidance to $33.00, blaming the miss on higher-than-expected medical costs in Medicaid. The company also revealed its benefit expense ratio had climbed to 89.5%, far above its prior forecast.
$ELV dropped 10.6% on October 17, 2024. Combined with earlier disclosures in July, $ELV lost over $84 per share across two major drops.
Based on these events, $ELV investors filed a claim against Elevance Health, accusing the company of the following:
- It overstated their earnings forecast while knowing Medicaid costs were climbing.
- It misled investors by claiming that rate negotiations were sound and risks were controlled.
Considering all the representations, investors believe Elevance hid material financial risks tied to its Medicaid segment to maintain stock price stability.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
10/17/2024
Filing date
05/12/2025
Lead Plaintiff Deadline
07/11/2025