Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 In Elanco Animal Health Incorporated To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Elanco Animal Health Incorporated (“Elanco” or the “Company”) (NYSE:ELAN) of the July 20, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Elanco stock or options between January 10, 2020 and May 6, 2020 and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Southern District of Indiana on behalf of all those who purchased Elanco securities between January 10, 2020 and May 6, 2020 (the “Class Period”). The case, Hunter v. Elanco Animal Health Incorporated et al., No. 1:20-cv-01460 was filed on May 20, 2020 and has been assigned to Judge Sarah Evans Barker.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose: (1) that, after consolidating its distributors from eight to four, the Company increased the amount of inventory, including companion animal products, held by each distributor; (2) that Elanco’s distributors were not experiencing sufficient demand to sell through the inventory; (3) that, as a result, the Company’s revenue was reasonably likely to decline; (4) that, as a result of the foregoing, Elanco would reduce its channel inventory with respect to companion animal products; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’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 in a press release, reporting revenue of $657.7 million and earnings per share of -$0.12. According to the Company, revenue declined “9 percent due to a reduction of approximately $60 million in channel inventory driven by factors resulting from the COVID-19 pandemic.” Defendant 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, the Company's stock price fell from $22.93 per share on May 6, 2020 to $19.88 per share on May 7, 2020: a $3.05 or 13.3% drop.
Elanco Animal Health Incorporated (ELAN)
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Filed on 05/20/2020
Lead Plaintiff Deadline 07/20/2020
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Richard W. Gonnello email@example.com Phone (212) 983-9330 Fax (212) 983-9331