NEW YORK - (NewMediaWire) - June 17, 2020 - 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, click here: www.faruqilaw.com/ELAN. 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.
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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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Elanco’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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