NEW YORK–(BUSINESS WIRE)–#AHCO–Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against AdaptHealth Corp. (NASDAQ: AHCO) on behalf of long-term stockholders following a class action complaint that was filed against AdaptHealth on October 24, 2023 with a Class Period from August 4, 2020 to February 27, 2023; and/or (ii) traceable to the Company’s secondary public offering conducted on or around January 5, 2021 (the “SPO”). Our investigation concerns whether the board of directors of AdaptHealth have breached their fiduciary duties to the company.
AdaptHealth is a supplier of home medical equipment for chronic health conditions including diabetes, sleep apnea, and wound care. AdaptHealth sells medical devices directly to patients, and then bills patients’ insurance providers, including the Centers for Medicare and Medicaid Services (“CMS”).
The complaint alleges that, throughout the Class Period, AdaptHealth and certain of its senior executives orchestrated a scheme to overcharge CMS and other insurance providers by submitting improper billing codes for diabetes equipment. To facilitate this scheme, AdaptHealth and certain of its senior executives made numerous false and misleading statements to investors during the Class Period. As a result of these misrepresentations, AdaptHealth common stock traded at artificially inflated prices during the Class Period.
According to the complaint, the truth about AdaptHealth’s misconduct was revealed on February 27, 2023, when 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%. AdaptHealth attributed the miss and lowered guidance to “tempered expectations on diabetes.” As a result of these disclosures, the price of AdaptHealth common stock declined precipitously.
If you are a long-term stockholder of AdaptHealth, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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