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Elanco Animal Health Incorporated Class Action Lawsuit

Case Summary

Company Name
Elanco Animal Health Incorporated
Stock Symbol
ELAN
Class Period
January 10, 2020 to May 6, 2020
Court
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%.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: January 10, 2020 - May 6, 2020
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