Bernstein Litowitz Berger & Grossmann LLP Files Securities Class Action Lawsuit Against Elevance Health for Alleged Misleading Statements Related to Medicaid Costs
Shareholder Alert: BLB&G Files Securities Class Action Lawsuit Against Elevance Health, Inc. the nationally recognized investor rights law firm Bernstein Litowitz Berger & Grossmann LLP (BLB&G) officially announced the filing of a securities class action lawsuit against Elevance Health, Inc. (“Elevance” or “the Company”). Shareholder The lawsuit, filed in the U.S. District Court for the Southern District of Indiana, accuses Elevance and certain of its senior executives of violating federal securities laws. The case seeks to represent investors who purchased or otherwise acquired Elevance common stock during the period from April 18, 2024, through October 16, 2024, inclusive (the “Class Period”).
The case is formally captioned Miller v. Elevance Health, Inc., No. 25-cv-923 (S.D. Ind.), and the complaint is the result of an extensive investigation into the Company’s conduct and financial disclosures. According to BLB&G, the complaint presents detailed evidence indicating that Elevance misled investors regarding the financial impact of changes in Medicaid policy following the COVID-19 pandemic. Interested investors can obtain a full copy of the complaint through BLB&G’s official website.
Background on Elevance Health and Medicaid Redetermination
Elevance Health is one of the largest health insurance providers in the United States, with a business model that includes administering Medicaid benefits through contracts with individual U.S. states. Medicaid, a joint federal and state program, provides healthcare coverage for low-income individuals and families. Shareholder The Company receives premiums from states to cover the expected costs of providing healthcare services to enrolled Medicaid members. These premiums are based on projected utilization and patient acuity—a measure of how sick or medically complex a patient population is.
During the COVID-19 pandemic, the federal government placed a temporary hold on states’ ability to conduct “redeterminations”—a process in which states assess whether current Medicaid beneficiaries remain eligible for coverage. This pause allowed many recipients to remain on Medicaid regardless of eligibility status. However, in 2023, the federal government lifted the moratorium, prompting states to resume redetermination efforts. Most states were expected to complete this process by mid-2024.
Allegations of Material Misstatements and Omissions
The lawsuit alleges that throughout the Class Period, Elevance and its executives made materially false and misleading statements, as well as omissions, regarding the Company’s ability to manage and anticipate the financial consequences of the redetermination process. According to the complaint, Elevance repeatedly told investors it was monitoring Medicaid cost trends and that the premiums it negotiated with state governments were sufficient to cover the risk and cost profile of members who would remain on Medicaid rolls.
Defendants acknowledged that Medicaid-related costs were increasing, but they insisted that these increases were fully accounted for in the Company’s earnings forecasts and financial guidance for 2024. Shareholder These statements, as alleged in the complaint, were knowingly or recklessly false and misrepresented the Company’s actual risk exposure.
In reality, the redetermination process was resulting in a shift in the composition of Medicaid enrollees. Healthier individuals were more likely to be removed from Medicaid eligibility, while individuals with more complex medical needs—those with higher acuity and greater healthcare utilization—remained enrolled. This imbalance led to a significant increase in the average cost of care for remaining Medicaid members.
Critically, Elevance failed to adjust its financial projections and negotiated premium rates in a way that accounted for this fundamental shift in its Medicaid population. According to the complaint, this disconnect between real-world Medicaid utilization trends and Elevance’s reported guidance misled investors and artificially inflated the Company’s stock price during the Class Period.
Disclosures Reveal the Truth to the Market
The truth began to surface on July 17, 2024, when Elevance issued a statement indicating that it now expected Medicaid utilization Shareholder rates to increase in the second half of the year. This revelation contradicted the Company’s previous assurances and marked the first acknowledgment of the real impact that redeterminations were having on Elevance’s Medicaid business.
The market reacted swiftly to this disclosure. Elevance’s common stock fell by $32.21 per share, representing a 5.8% drop in value. However, even after this initial drop, Elevance Shareholder executives continued to downplay the extent of the cost increases, insisting that the Company’s full-year financial guidance still accounted for all known variables.
Just a few months later, on October 17, 2024, Elevance released its financial results for the third quarter of 2024. The numbers confirmed investors’ growing concerns. Elevance reported earnings per share (EPS) that missed Wall Street estimates by $1.33, or approximately 13.7%. The Company attributed the shortfall to elevated medical costs in its Medicaid segment, confirming that the financial strain from redeterminations had significantly impacted profitability.
In addition to the earnings miss, Elevance revised its full-year EPS guidance downward, from $37.20 to $33.00—a reduction of 11.3%. These disclosures triggered another sharp sell-off, with Elevance shares tumbling $52.61 per share, or 10.6%, in a single day.
According to the complaint, these two events—on July 17 and October 17—reveal the materialization of risks that Elevance had failed to properly disclose during the Class Period. Investors who purchased shares at inflated prices now face significant losses, allegedly due to the Company’s misleading statements.
Investors’ Legal Rights and Deadline to Act
BLB&G urges any investor who purchased or otherwise acquired Elevance common stock between April 18 and October 16, 2024, to consider their legal options. The Court has set a deadline of July 11, 2025, for investors to file a motion seeking to be appointed as Lead Plaintiff in the case. The Lead Plaintiff is typically the investor with the largest financial interest in the relief sought by the class, and they act on behalf of all other class members during the litigation.
Investors who meet the criteria for inclusion in the Class may choose to:
- File a motion to be appointed as Lead Plaintiff,
- Retain counsel of their own choosing to represent their interests, or
- Take no action and remain a passive member of the Class.
Regardless of their decision, investors are encouraged to seek legal guidance to understand the implications of the lawsuit and ensure their rights are preserved.
