Robbins Geller Files Class Action Lawsuit Against Elevance Health.
Robbins Geller Rudman & Dowd LLP has filed a class action lawsuit against Elevance Health, Inc. (NYSE: Principle), claiming the company misled shareholders about mounting risks within its Medicaid operations, risks that ultimately triggered sharp drops in stock value.
The lawsuit, filed in federal court, focuses on revelations that emerged in mid-to-late 2024.
According to the complaint, Elevance Health failed to adequately disclose the impact of Medicaid eligibility “Rederminations ”, a process that saw healthier individuals dropped from the program, leaving a population with higher medical needs behind.
As a result, the cost of care, referred to in the industry as “acuity” rose faster than anticipated.
The company’s guidance, however, reportedly did not reflect this shift, nor did its state-level rate negotiations.
On July 17, 2024, Elevance signaled to the market that it was “expecting second half utilization to increase in Medicaid,” citing higher demand across areas like home health care, radiology, and elective procedures.
That announcement alone shaved nearly 6% off the company’s stock price.
But it was the October earnings report that truly rattled investors.
On October 17, 2024, Elevance revealed it had missed Q3 earnings expectations by $1.33 per share, a shortfall of more than 13%, largely due to “elevated medical costs in [its] Medicaid business.”
The company also slashed its full-year EPS forecast from $37.20 to $33.00, citing continued pressure from Medicaid-related costs. The stock promptly dropped another 11%.
Elevance hadn’t just underestimated the problem, it had failed to warn investors in time.
Investors who purchased shares of Elevance Health during the relevant period and sustained losses now have a chance to take the lead in the legal action.
The deadline to file a lead plaintiff motion in the Elevance Health class action lawsuit is July 11, 2025.
Those interested in participating or learning more about the case can submit their information here.
Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities class action litigation, shareholder derivative actions, and consumer protection cases. Established in 1992, the firm has earned a reputation for its expertise in handling complex legal matters on behalf of institutional investors, individuals, and consumer groups. With a team of skilled attorneys, Robbins Geller is known for its dedication to securing justice and maximizing recoveries for clients, often representing those who have suffered significant financial losses. The firm has a history of success in landmark cases, and its attorneys are recognized as leaders in the field of securities litigation. Robbins Geller operates nationwide and has offices in major U.S. cities.
