AdaptHealth Corp. (AHCO) Misrepresented the Success and Growth of its Diabetes Segment
A shareholder filed a class action on behalf of (i) persons or entities who purchased AdaptHealth Corp. (NASDAQ: AHCO) common stock between August 4, 2020 and February 27, 2023, and/or (ii) AdaptHealth common stock pursuant and/or traceable to the Company’s secondary public offering (“SPO”) conducted January 5, 2021. AdaptHealth is a distributor of home medical equipment that principally provides home medical supplies for chronic health conditions including diabetes, sleep apnea, and wound care.
According to the complaint, during the class period, AdaptHealth misstated the Company’s true ability to generate organic growth in its diabetes segment and engaged in improper upcoding and other illicit billing practices. Moreover, the SPO Offering Materials contained untrue statements of material fact and failed to make the necessary disclosures required of these documents.
On February 27, 2023, the Company announced a surprise loss of $0.02 per share for the fourth quarter of 2022, which was significantly lower than the gain of $0.27 per share that analysts and investors were led to expect. The Company also reduced its guidance for 2023, lowering revenue expectations it had provided just seven weeks earlier by over 1.5%. On this news, the Company’s share price fell by $5.99 per share, or 27%, to close at $15.99 per share.
What Now: Similarly situated shareholders may be eligible to participate in the class action against AdaptHealth Corp. Shareholders who want to act as lead plaintiff for the class must file their motion for lead plaintiff by December 26, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
