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On this news, Humana's stock price fell by $18.20 per share, or almost 4%, from $463.85 per share on June 15, 2023, to close at $445.65 per share on June 16, 2023, according to the complaint.

Humana then announced additional increases in its expected medical costs, and in August 2023, it revealed the utilization rate increases it disclosed in June had now stabilized at new higher levels, the complaint says.

A third stock drop occurred in January, according to the complaint, when Humana preliminary released its financial results for the fourth quarter and full year of 2023 and "shocked" investors by revealing its benefits expense ratio increased to roughly 91.4% for the fourth quarter of 2023 and approximately 88% for the full year.

"As a result, the company's 2023 adjusted EPS were only $26.09 per share, or more than $2 per share less than what the company had predicted in November 2023," the complaint says. "In response to this announcement, the price of Humana common stock fell $35.78 per share, or approximately 8%, from a close of $447.76 per share on Jan. 17, 2024, to close at $411.98 per share on Jan. 18, 2024."

The annuity fund says a final stock drop occurred in late January when Humana announced a loss for the fourth quarter of 2023 and said it expected the higher level of medical costs to continue throughout 2024.

On this news, Humana common stock declined an additional $47.04 per share, or nearly 12%, from $402.40 per share on Jan. 24, 2024, to close at $355.36 per share on Jan. 25, 2024, according to the complaint.

The suit seeks damages, attorney fees and a jury trial.

Representatives for the parties did not immediately respond to requests for comment Monday.

The Iron Workers Local 401 Annuity Fund is represented by Gregory V. Varallo of Bernstein Litowitz Berger & Grossmann LLP and Naumon A. Amjed, Ryan T. Degnan and Jonathan Z. Naji of Kessler Topaz Meltzer & Check LLP.

Counsel information for the defendants was not immediately available.

The case is Iron Workers Local 401 Annuity Fund v. Humana Inc. et al., case number 1:24-cv-00655, in the U.S. District Court for the District of Delaware.