Shareholder rights law firm Robbins LLP announces that a purchaser of Elanco Animal Health Incorporated (NYSE: ELAN) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between January 10, 2020 and May 6, 2020. Elanco is an animal health company that develops, manufactures, and markets products for companion and food animals.
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Elanco Animal Health Incorporated (ELAN) Accused of Misleading Shareholders
According to the complaint, on March 24, 2020, Elanco withdrew its previously announced 2020 revenue and earnings per share guidance in light of the coronavirus pandemic. However, Elanco assured investors “the Company is closely monitoring distribution logistics” and that “at this time, Elanco is not experiencing any supply disruption.” Despite these assurances, on May 7, 2020, Elanco announced its first quarter 2020 results revealing revenue of $657.7 million and earnings per share of negative $0.12, reflecting a reduction of approximately $60 million in channel inventory. Elanco attributed the disappointing financial results to “distributor performance,” among other things and assured investors the Company would “tighten [its] approach across many facets of [its] distributor relationships.” On this news, Elanco’s share price fell over 13% to close at $19.88 per share.
Elanco Animal Health Incorporated (ELAN) Shareholders Have Options
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