Robbins Arroyo LLP: Adeptus Health Inc. (ADPT) Misled Shareholders According to a Recently Filed Class Action
Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Adeptus Health Inc. (NYSE: ADPT) in the U.S. District
Court for the Eastern District of Texas, Sherman Division. The complaint is brought on behalf of all purchasers of Adeptus
securities between June 25, 2014 and November 1, 2016, for alleged violations of the Securities Exchange Act of 1934 by Adeptus's
officers and directors. Adeptus owns and operates a network of independent freestanding emergency rooms in the United States.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/adeptus-health-inc
Adeptus Accused of Engaging in Unethical Billing Practices
According to the complaint, Adeptus held its initial public offering on June 25, 2014 of 5.3 million shares and received net
proceeds of approximately $96.2 million. On May 11, 2015, Adeptus held its secondary public offering ("SPO") of 1.6 million shares
for $94.5 million; on July 31, 2015, Adeptus held another SPO, selling 2.6 million shares for $265.9 million; and on June 8, 2016,
Adeptus completed another SPO, offering 1.7 million shares for $107.4 million. The complaint alleges that Adeptus' offering
documents failed to disclose material adverse facts about the company's business, operations, and future prospects. Further,
Adeptus officials allegedly did not disclose that: (i) Adeptus was engaged in the widespread overbilling of patients; (ii)
Adeptus's billing practices were causing decreases in patient volume and would subject it to decreased revenues; (iii) the
company's billing practices exposed it to major financial, reputational, legal, and regulatory risks; and (iv) the company's
financial statements were not in compliance with Generally Accepted Accounting Principles.
On November 1, 2016, Adeptus released its third quarter earnings results, disclosing that it missed earnings estimates and
reported a net loss of $11.7 million in the third quarter of 2016. The company reduced its adjusted guidance for earnings before
interest, taxes, depreciation, and amortization for the full year and admitted that it needed to secure emergency financing of
$27.5 million from existing investors. The company cited weaker than expected volumes in non-hospital outpatient department
markets, collection issues associated with its third party billing agent, and higher costs associated with the opening of three
hospitals in the second half of the year. On this news, Adeptus's stock dropped $21.52 per share, or over 71%, to close at $8.60
per share on November 2, 2016.
Adeptus Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Robbins Arroyo LLP
Darnell R. Donahue
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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