Elanco Animal Health Incorporated Class Action Lawsuit
- Company Name
- Elanco Animal Health Incorporated
- Stock Symbol
- Class Period
- January 10, 2020 to May 6, 2020
- Southern District of Indiana
The Elanco Animal Health Incorporated class action lawsuit charges Elanco and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Elanco securities between January 10, 2020 and May 6, 2020 (the “Class Period”). The Elanco class action lawsuit was commenced on May 20, 2020 in the Southern District of Indiana and is captioned Hunter v. Elanco Animal Health Incorporated, No. 20-cv-01460.
Elanco is an animal health company that develops, manufactures, and markets products for companion and food animals.
The Elanco class action lawsuit alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (1) after consolidating its distributors from eight to four, Elanco increased the amount of inventory, including companion animal products, held by each distributor; (2) Elanco’s distributors were not experiencing sufficient demand to sell through the inventory; (3) as a result, Elanco’s revenue was reasonably likely to decline; (4) as a result of the foregoing, Elanco would reduce its channel inventory with respect to companion animal products; and (5) as a result of the foregoing, defendants’ positive statements about Elanco’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On May 7, 2020, Elanco announced its first quarter 2020 financial results, reporting revenue of $657.7 million and a loss of $0.12 per share, reflecting “a reduction of approximately $60 million in channel inventory.” Elanco’s Chief Executive Officer, Jeffrey N. Simmons, attributed the disappointing results to “distributor performance,” among other things, and stated that Elanco planned “to tighten [its] approach across many facets of [its] distributor relationships.” On this news, Elanco’s share price fell more than 13%.
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