Investors sue Elanco Animal Health for misleading statements on drug approvals

In the United States, Bleichmar Fonti & Auld LLP recently announced that a lawsuit has been initiated against Elanco Animal Health Incorporated and certain senior executives, citing possible violations of federal securities laws. The complaint, pending in the U.S. District Court of Maryland, particularly emphasizes claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of Elanco investors. The law firm highlights the significance of two treatments, Zenrelia and Credelio Quattro, developed to treat various animal diseases and currently under review by the U.S. Food and Drug Administration (FDA), as key elements leading to the lawsuit. On June 27, 2024, Elanco communicated its anticipation that neither of these drugs would receive FDA approval in June, following which the company’s stock price fell drastically—plummeting over 21% from $17.97 to $14.27 per share. This announcement raised concerns about the veracity of previous statements made by Elanco concerning the FDA's review process. Investors are being invited to take action, as they have until December 6, 2024, to apply for lead plaintiff status in the ongoing case. The lawsuit seeks to determine if any materially false or misleading statements were made that misrepresented the regulatory prospects of the company's products, which consequently affected stock market performance.