Elevance Health’s stock price crashed by $32.21 per share (nearly 6%) at the time they announced increased Medicaid utilization on July 17, 2024. The company’s situation dElevance Health Class Action Lawsuiteteriorated further on October 17, 2024, when they missed earnings expectations by 13.7%.

This news caused their shares to tumble by an additional $52.61—almost 11%. The lawsuit claims that executives gave false information about their monitoring of cost trends related to Medicaid redeterminations, which increased both acuity and utilization among Medicaid members by a lot.

The Elevance Health class action lawsuit represents people who bought Elevance common stock between April 18, 2024, and October 16, 2024. The company’s biggest problem stemmed from their failure to reveal that healthier members were being removed from Medicaid while less healthy ones stayed eligible. This issue ended up forcing them to reduce their full-year EPS guidance from $37.20 to about $33—an 11.3% decrease.

Elevance Faces Securities Fraud Allegations

The Elevance Health class action lawsuit focus on statements made between April 18 and October 16, 2024. During this time, the healthcare giant made several claims to investors that are the foundations of the class action lawsuit.

Company allegedly misled investors on Medicaid cost trends

The lawsuit Miller v. Elevance Health, Inc. claims that Elevance executives gave wrong information about their grasp of Medicaid cost trends. The company repeatedly told investors they were “closely monitoring cost trends associated with the redetermination process”. On top of that, executives said premium rates negotiated with states were “sufficient to address the risk and cost profiles” of patients who stayed on Medicaid programs.

Elevance tried to boost investor confidence by stating they could see 75% of Medicaid rates and managed to keep the cost effects of redeterminations in line with their expectations. The company kept reassuring investors that these increases were “adequately reflected in the Company’s guidance for the year,” even as Medicaid expenses rose.

The U.S. District Court for the Southern District of Indiana received a lawsuit stating these claims were misleading and untrue. More than that, the complaint points to violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Statements failed to reflect rising acuity and utilization

Behind the scenes, a fundamental change was happening in Elevance’s Medicaid membership, contrary to their public statements. The redetermination process—which started again in 2023 after COVID pause—created a worrying pattern. Healthier members left Medicaid while sicker, costlier patients stayed enrolled.

This change led to higher “acuity and utilization” among Elevance’s Medicaid members. Analysts later pointed out that these trends caught the company off guard, while competitors had warned about similar issues earlier.

These allegations become serious because Elevance failed to:

• Adjust its pricing models to reflect the changing member profile
• Update financial guidance to account for higher costs
• Properly negotiate rates with states that reflected the true risk profile

The Elevance Health class action lawsuit states this membership change happened at a level that didn’t show up in Elevance’s rate negotiations with states or its financial guidance for 2024. Rather than admitting these challenges, Elevance “hid material financial risks tied to its Medicaid segment to maintain stock price stability”.

The truth started coming out on July 17, 2024. Yet plaintiffs say Elevance still made “false, reassuring statements” about cost increases and how they factored into full-year guidance. Investors didn’t see the complete picture until the October 17 earnings announcement revealed a huge earnings miss and guidance cut.

The Elevance Health lawsuit claims that by minimizing the financial risks of the Medicaid redetermination process, Elevance artificially drove up its stock price during the class period. This harmed investors who made decisions based on what the lawsuit calls incomplete or misleading information.

Disclosures Trigger Major Stock Price Declines

Elevance Health’s stock took two major hits in 2024 when the company revealed growing problems with its Medicaid business. These disclosures ended up wiping out billions in shareholder value.

July 17, 2024: First warning on Medicaid utilization

Signs of trouble surfaced during Elevance’s second-quarter earnings call on July 17, 2024. The company posted solid results with a medical loss ratio of 86.3%, but deeper issues lurked beneath the surface. CFO Mark Kaye warned investors about “seeing signs of increased utilization in outpatient, home health, radiology and other areas”.

The company revealed that Medicaid redeterminations had created a “higher-acuity Medicaid membership”. President Felicia Norwood noted a possible “short-term disconnect between the timing of our rates and the emerging acuity in our populations”. Despite these concerns, the company managed to keep its full-year guidance.

The market responded quickly. Elevance’s stock dropped $32.21 in one trading day, falling 5.8% from $553.14 to $520.93. This decline happened even though the company’s medical loss ratio beat Wall Street expectations.

October 17, 2024: Q3 earnings miss and guidance cut

The company’s situation worsened dramatically three months later. Elevance announced third-quarter adjusted earnings of $8.37 per share on October 17, missing analysts’ expectations by $1.33 or 13.7%. This showed a 6.9% earnings decline from the previous year.

CEO Gail Boudreaux blamed “elevated medical costs in our Medicaid business” for the poor results. The medical loss ratio had jumped to 89.5%, showing a concerning 270 basis point increase from 86.8% in the prior-year quarter.

The most damaging news came from Elevance’s revised full-year outlook. The company cut its 2024 adjusted earnings per share forecast from $37.20 to “approximately $33.00” – an 11.3% reduction, just three months after confidently keeping its guidance.

Executives pointed to a “timing mismatch between Medicaid rates and acuity” for the reduction. The redetermination process removed healthier members, leaving a sicker population that needed more expensive care. Medicaid membership fell by 1.5 million members or 3% year-over-year.

Stock drops nearly 17% over two announcements

October’s news triggered a steeper market selloff than July’s warning. The stock fell $52.61 or 10.6%, closing at $444.35. This second decline was almost twice as severe as July’s drop.

These two announcements erased nearly 17% of Elevance’s stock value, destroying billions in market value. The October news affected competitors too, as “Centene slid 10%, while CVS Health and Humana fell 3% each” amid wider industry concerns about Medicaid costs.

Investors saw the gravity of Elevance’s problems clearly. The company’s operating gain dropped 11.1% to $1.60 billion compared to last year, falling well below analyst expectations. Operating margin fell 80 basis points to 4.2%, highlighting the financial pressure from Medicaid challenges.

Analysts later noted that these trends caught Elevance off guard, while competitors had warned about similar Medicaid business challenges earlier. These revelations are now the foundations of the Elevance Health Class Action Lawsuit, with plaintiffs arguing that the company should have known and revealed these problems much sooner.

Investors File Elevance Class Action Lawsuit in Indiana Court

Investors quickly took legal action after Elevance Health’s dramatic stock decline. Several prominent law firms filed a class action lawsuit against the company in federal court on May 12, 2025. This marked a crucial turning point in the company’s mounting challenges.

Case captioned Miller v. Elevance Health, Inc.

The U.S. District Court for the Southern District of Indiana received the Elevance Health Class Action Lawsuit under Miller v. Elevance Health, Inc., case number 25-cv-00923. Plaintiff Eric Miller filed the suit against the corporation and its core team. The defendants include CEO Gail K. Boudreaux, Medicaid President Felicia F. Norwood, CFO Mark B. Kaye, and Stephen V. Tanal.

Judge Jane Magnus-Stinson leads the case proceedings, with Judge Mark J. Dinsmore serving as the Referring Judge. The Elevance Health Lawsuit falls under Securities/Commodities classification, and the plaintiff has requested a jury trial.

Filed under Sections 10(b) and 20(a) of the Exchange Act

The Elevance Health Lawsuit cites violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. These sections are the foundations of securities fraud litigation. Section 10(b) bans deceptive practices in securities transactions, while Section 20(a) holds controlling individuals accountable for securities violations.

The Elevance Health Lawsuit claims Elevance Health and its executives “deceived investors by downplaying the financial risks of Medicaid’s post-pandemic redetermination process”. Plaintiffs argue these statements were “materially false or misleading” because the company failed to reveal how changing Medicaid demographics affected its financial results.

Class period spans April 18 to October 16, 2024

The class action covers investors who bought or acquired Elevance common stock between April 18, 2024, and October 16, 2024. This period captures the alleged misrepresentations and ends right before the October 17 earnings announcement revealed the extent of Medicaid cost problems.

Investors must have purchased or acquired Elevance securities during this timeframe to qualify as class members. The class period starts with what plaintiffs describe as misleading statements about Medicaid cost trends and ends just before the major earnings miss and guidance reduction crashed the stock price.

What Can Elevance Shareholders Do Now?

Elevance Health shareholders must now decide how they want to participate in the Elevance Health Lawsuit. Shareholders who bought company stock between April 18 and October 16, 2024 have several options to consider.

Deadline to file as lead plaintiff in the Elevance Health Lawsuit: July 11, 2025

The clock is ticking for investors who want to take an active role in the Elevance Health Lawsuit. The court set July 11, 2025 as the final deadline for filing lead plaintiff status motions. This date marks the first business day after 60 days from the notice of pendency publication. The lead plaintiff acts as a representative who guides litigation for all class members. Courts usually pick an investor or small group with the biggest financial stake who also meet adequacy and typicality requirements.

Shareholders who experienced big losses and want to serve as lead plaintiff should reach out to attorney Timothy L. Miles at the Law Offices of Timothy L. Miles. He offers free consultations by phone at 855/846-6529 or email at [email protected].

No upfront legal fees under contingency model

The good news is that investors seeking compensation through this class action don’t need to worry about initial costs. Legal teams work on contingency fees, which means they only get paid if they win the case. Court documents clearly state that “shareholders are not responsible for any court costs or expenses of litigation”.

This makes the Elevance Health Lawsuit available to all affected investors, whatever their financial situation.

Investors can join or remain passive class members

Shareholders still have options even if they don’t want to be lead plaintiff in the Elevance Health Lawsuit . Anyone who bought Elevance stock during the class period becomes a class member automatically. Legal notices make it clear that “an investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff”. So affected shareholders in the Elevance Health Lawsuit can:

1. Apply for lead plaintiff status by the July 11 deadline
2. Formally join the Elevance Health Lawsuit through legal counsel
3. Stay passive and still benefit from any settlement

Shareholders with losses over $100,000 might want to participate actively since this gives them more say in litigation strategy and settlement terms.

Conclusion: The Road Ahead for Elevance Health and Its Investors

A major legal challenge faces one of America’s largest healthcare insurers through the Elevance Health Lawsuit. The allegations of securities fraud focus on what plaintiffs describe as misleading statements about Medicaid cost trends throughout 2024. The company’s stock plunged nearly 17% across two major disclosures and erased billions in shareholder value, despite public assurances that they were “closely monitoring” redetermination effects.

Shareholders must now make crucial decisions about their legal options and participation in the Elevance Health Lawsuit. The deadline of July 11, 2025, approaches quickly for those who want to seek lead plaintiff status. Attorney Timothy L. Miles of the Law Offices of Timothy L. Miles can help answer questions about shareholder rights or assist those who experienced substantial losses and wish to serve as lead plaintiff. He can be reached at no cost by calling 855/846-6529 or via e-mail at [email protected].

The case, Miller v. Elevance Health, Inc., claims violations under Sections 10(b) and 20(a) of the Securities Exchange Act. It expresses the disconnect between corporate disclosures and actual operational challenges. The plaintiffs argue that Elevance failed to properly disclose how Medicaid redeterminations created a higher-acuity, costlier member population—information that should have appeared in guidance much earlier, according to the lawsuit.

This Elevance Health Lawsuit demonstrates the serious risks companies face when actual performance substantially differs from public statements. The broader investment community and Elevance shareholders will track this class action’s progress through the legal system in the months ahead.

Frequently Asked Questions About the Elevance Health Lawsuit

Q1. What is the Elevance Health class action lawsuit about? The lawsuit alleges that Elevance Health misled investors about Medicaid cost trends and failed to disclose the financial risks associated with the post-pandemic Medicaid redetermination process, resulting in significant stock price declines.

Q2. When is the deadline for investors to file as lead plaintiff in the Elevance Health lawsuit? The deadline for investors to file as lead plaintiff in the Elevance Health class action lawsuit is July 11, 2025.

Q3. What are the options for those affected by the Elevance Health lawsuit? Affected shareholders can apply for lead plaintiff status, formally join the class action through legal counsel, or remain passive class members and potentially benefit from any settlement without taking immediate action.

Q4. Are there any upfront costs for investors participating in the Elevance Health lawsuit? No, there are no upfront costs for investors. The legal representation operates on a contingency fee basis, meaning attorneys only collect fees if the case is successful.