NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of Indiana on behalf of those who acquired Elanco Animal Health Incorporated (“Elanco” or the “Company”) (NYSE: ELAN) securities during the period from January 10, 2020 through May 6, 2020. Investors have until July 20, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) after consolidating its distributors from eight to four, the Company increased the amount of inventory, including companion animal products, held by each distributor; (ii) Elanco’s distributors were not experiencing sufficient demand to sell through the inventory; (iii) as a result, the Company’s revenue was reasonably likely to decline; and (iv) as a result of the foregoing, Elanco would reduce its channel inventory with respect to companion animal products.
On May 7, 2020, Elanco announced its first quarter 2020 financial results, reporting revenue of $657.7 million and earnings per share of -$0.12, reflecting “a reduction of approximately $60 million in channel inventory.” The Company’s Chief Executive Officer 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 share price fell $3.05, or 13.3%, to close at $19.88 per share on May 7, 2020.
If you acquired Elanco securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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