Elanco Animal Health $15 Million SEC Fair Fund Payout

Investors who bought or acquired Elanco Animal Health Inc. common stock (NYSE: ELAN) between May 9, 2019, and May 6, 2020, may be eligible to claim a cash payment from a Securities and Exchange Commission fair fund.

Elanco Animal Health Inc. paid a $15 million civil money penalty to settle an SEC enforcement action that found the company failed to disclose that quarter-end incentives to distributors propped up its reported revenue growth. The SEC placed the penalty into a fair fund under the Sarbanes-Oxley Act so it can distribute the money to harmed investors.

Who can file a claim?

The fund covers individuals and entities, or their lawful successors, who bought or acquired Elanco Animal Health common stock between May 9, 2019, and May 6, 2020, inclusive.

Additional details

• Both individuals and entities can file claims.
• Investors who received shares by gift, inheritance or operation of law may file to the extent the original purchaser would have been eligible.
• The actual beneficial owner or a legal representative of that owner must file the claim.
• Administrators, custodians or fiduciaries, not the plan's participants, must file for retirement plans covered by ERISA.
• Each account that qualifies requires a separate claim form.

How much can claimants get?

The total fund is $15,000,000. The amount each claimant receives depends on several factors:

• The number of valid claims submitted
• The number of shares bought during the relevant period
• The timing of each purchase and sale
• The total recognized losses of all claimants

The fund administrator will calculate a recognized loss for each share bought between May 9, 2019, and May 6, 2020, under the plan of allocation:

• For shares sold before the close of trading on May 6, 2020, the recognized loss is $0.
• For shares sold after the close of trading on May 6, 2020, and before the close of trading on Aug. 4, 2020, the recognized loss is the least of $3.29 in artificial inflation per share, the purchase price minus the sale price or the purchase price minus the moving average closing price on the sale date listed in Table B of the plan of allocation (Page 22 of the plan of distribution).
• For shares held at the close of trading on Aug. 4, 2020, the recognized loss is the lesser of $3.29 or the purchase price minus $21.80, the average closing price over that lookback period.
• The fund administrator will match purchases and sales on a first-in, first-out basis.
• Option contracts, swaps and other derivatives are not eligible.
• Shares bought to cover a short position have a recognized loss of $0.
• Recognized losses cannot exceed a claimant's actual market loss and decrease by the amount of any compensation the class member already received for the same conduct, such as a class action settlement.
• The fund administrator will set any recognized loss that calculates to a negative number to $0.
• If total recognized losses exceed the fund, the fund administrator will reduce payments on a pro rata basis.
• Claimants whose calculated distribution payment is less than $20 will not receive a payment.

How to claim an Elanco Animal Health fair fund payment

Claimants may file a claim online or download, print and complete the PDF claim form and mail or email it to the fund administrator. The deadline to file a claim is Sept. 14, 2026.

Fund administrator's mailing address: Elanco Animal Health Inc. Fair Fund, Fund Administrator, P.O. Box 2228, Portland, OR 97208-2228

Fund administrator's email address: info@ElancoAnimalHealthFairFund.com

Proof or documentation required to submit a claim

All claimants must provide their full Social Security number or taxpayer identification number. They must also provide holdings and transaction information, including:

• Number of shares held at the opening of trading on May 9, 2019
• Trade dates for purchases and sales between May 9, 2019, and Aug. 4, 2020
• Number of shares bought or sold
• Price per share and total purchase or sale price
• Number of shares held at the close of trading on Aug. 4, 2020

Claimants must also provide documentation supporting each transaction listed on the claim form. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Other documentation from the original bank, broker or financial institution showing purchases, sales and holdings

Payout options

• Physical check
• Electronic payment

Important date

• Deadline to file a claim: Sept. 14, 2026

When is the Elanco Animal Health fair fund payout date?

The settlement administrator will complete all claim determinations within 150 days of the Sept. 14, 2026, claims bar date and begin issuing payments within 10 business days of the SEC releasing the funds.

Why is there a fair fund payment?

The SEC found Elanco Animal Health used quarter-end incentives to its distributors to hit internal revenue targets then failed to disclose the practice. Elanco stopped the incentives and announced an estimated $160 million revenue decline on May 7, 2020, sending its share price down more than 13%.

Elanco paid a $15 million civil money penalty to settle the proceeding, and the SEC placed the penalty into a fair fund for harmed investors.

Sources

1. Plan notice
2. Claim form
3. Plan of distribution