The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Pennsylvania on behalf of those who acquired AdaptHealth Corp. (“AdaptHealth” or the “Company”) (NASDAQ: AHCO) securities during the period from August 4, 2020 through February 27, 2023, inclusive (the “Class Period”). Investors have until December 26, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
AdaptHealth Corp. sells and leases home medical equipment, including mobility and oxygen equipment, wheelchairs, walkers, sleep therapy supplies, and hospital beds to hospitals, sleep labs, skilled nursing facilities, and clinics.
On January 4, 2021, AdaptHealth announced the Company’s secondary public offering (“SPO”). The next day, AdaptHealth announced, in connection with the SPO, it would sell 7,250,000 shares of AdaptHealth common stock and a selling stockholder would sell an additional 750,000 shares of AdaptHealth common stock at a price of $33 per share. The Company also announced that it would grant the underwriters a 30-day option to purchase up to 1,200,000 additional shares of AdaptHealth common stock.
On or around January 5, 2021, AdaptHealth conducted the SPO. Pursuant to the SPO Offering Materials, the Company sold 8,450,000 shares of AdaptHealth common stock, including the full exercise of the underwriters’ option to purchase an additional 1,200,000 shares, and a selling stockholder sold an additional 750,000 shares of AdaptHealth common stock.
On February 27, 2023, AdaptHealth announced a loss of $0.02 per share for the fourth quarter of 2022, substantially lower than the estimated gain of $0.27 per share. AdaptHealth also reduced its guidance for 2023, lowering revenue expectations the Company had provided seven weeks earlier by over 1.5%. The Company attributed the poor financial results and lowered guidance to “lower diabetes growth in the second half than [] anticipated.” On this news, the price of AdaptHealth shares declined by $5.99 per share, or approximately 27.25%, from $21.98 per share to $15.99 on February 28, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose in its SPO offering materials that: (i) the Company was unable to generate the organic growth in its diabetes segment as expected; (ii) the Company was engaged in improper upcoding and other illicit billing practices; and (iii) the Company’s purported warnings that the Company “could be adversely affected” if it was found to engage in overbilling as a result of “coding errors” was insufficient given the risk presented by overbilling had already materialized.
If you purchased or otherwise acquired AdaptHealth securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
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