10 Stocks Battered by Bearish Outlooks

6. Elanco Animal Health Inc. (NYSE:ELAN)

Elanco dropped its share prices by 7.04 percent on Tuesday to end at $10.04 apiece following news that it was being investigated by shareholder law firms for potential securities violations.

In separate statements, the shareholder law firms announced they had initiated their own investigations against ELAN for allegedly issuing materially false and misleading statements regarding its business, operations, and prospects.

A class action lawsuit has already been filed against the company claiming that ELAN failed to disclose that its Zenrelia drug was less safe that it led investors to believe, it was unlikely to meet the timeline for the US approval and commercial launch for its Zenrelia and Credelio Quattro treatments, and that its financial prospects were overstated.

ELAN has yet to issue a statement on the allegations.