According to the Complaint, Elevance Health, Inc. is a healthcare company that provides health insurance plans to government-operated Medicaid and Medicare markets. This lawsuit was filed against Elevance and four individual Defendants.

The Complaint alleges that, throughout the Class Period, Defendants represented to investors that they were closely monitoring cost trends associated with the redetermination process and that the premium rates Elevance was negotiating with states were sufficient to address the risk and cost profiles of those patients staying on Medicaid programs. In fact, sicker patients with higher acuity tended to remain on Medicaid after redetermination, leading to higher per-patient costs. This increase in cost was occurring at a rate that was not adequately reflected in Elevance’s rate negotiations with the states or in its financial guidance for 2024. As a result, the Complaint alleges Defendants’ positive statements concerning Elevance’s close monitoring of the redeterminations, the actuarial soundness of its rates and the prudence of its forecasts were materially misleading and/or lacked a reasonable basis.