AdaptHealth Corp. (AHCO) Made Misleading Statements Regarding its Business Prospects
On July 8, 2019, DFB, a special purpose acquisition company, announced it had entered into a definitive merger agreement for a business combination with AdaptHealth, LLC. Upon the closing of the merger, DFB renamed itself AdaptHealth Corp. Between November 11, 2019 and July 16, 2021, AdaptHealth failed to disclose that it had misrepresented its organic growth trajectory by retroactively inflating past organic growth numbers without disclosing the changes, in violation of SEC regulations. As a result, the Company materially overstated its financial prospects.
On July 19, 2021, Jehoshaphat Research published a report alleging that AdaptHealth obscures its organic growth by “[r]etroactively changing past organic growth numbers to be higher, with no disclosure about the change.” Jehoshaphat accused AdaptHealth of “experiencing double-digit organic decline” and “taking steps to obscure that decline which are expressly forbidden by the SEC.” On this news, AdaptHealth’s stock fell $1.51 per share, or almost 6%, to close at $23.96 per share on July 19, 2021.
If you purchased shares of AdaptHealth Corp. (AHCO) between November 11, 2019 and July 16, 2021, you have until September 27, 2021, to ask the court to appoint you lead plaintiff for the class.
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