Elevance Investor Sues Over Post-Pandemic Medicaid Costs (1)

Elevance Health Inc. misled investors over Medicaid members’ cost impact after the federal government lifted the pandemic pause on redetermining eligibility, a proposed class action said.

Share prices plunged almost 11% on Oct. 17, the day the health insurer said it missed quarterly consensus earnings per share expectations due to higher medical costs in its Medicaid business, an investor told the US District Court for the Southern District of Indiana. It was the stock’s steepest single-day slide since March 2020, according to data compiled by Bloomberg.

Elevance missed that third-quarter of 2024 adjusted diluted EPS outlook by $1.33, or nearly ...