The complaint alleges that Elanco made materially false and/or misleading statements and failed to disclose material adverse facts about its business, operations, and prospects. Specifically, it says Elanco failed to disclose to investors that, after consolidating its distributors from eight to four, the company increased the amount of inventory, including companion animal products, held by each distributor; that Elanco’s distributors were not experiencing sufficient demand to sell through the inventory;
