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AHCO.US

AdaptHealth (AHCO) Deceptive Growth Claims Case

E.D. Pennsylvania
Court
2:23-cv-04104
Case number
  • AdaptHealth claimed its growth was due to more clients and high demand for diabetes products. However, in reality, the growth was driven by improper billing practices.
  • In February 2023, the truth came out, leading to a 27% $AHCO fall.
AdaptHealth claimed its exceptional growth was due to an expanding client base and a focus on supplying constantly needed diabetes products. They made statements about breaking records, citing Medicare relaxations as a contributing factor. In truth, AdaptHealth's growth was the result of improper billing practices.

On February 27, 2023, AdaptHealth reported a significant financial loss for the Q4 2022, contrary to the expected gain. Additionally, the company lowered its revenue expectations for 2023, blaming it on "lower diabetes growth."

This caused $AHCO fall by 27% and $815M loss of market cap the next day, damaging shareholders.

Given all the information, investors have reasons to suspect that AdaptHealth didn't disclose their financial condition and the real factors affecting it.
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
28 February 2023
Filing date
24 October 2023
Lead Plaintiff Deadline
23 December 2023
Collecting participants…
Created by Polina Foster, Scout

Adapthealth Corp

AdaptHealth Corp., together with its subsidiaries, provides home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy eq...

    Ticker
    AHCO.US
    ISIN
    US00653Q1022
    CIK
    1725255
    Sector
    Healthcare
    Industry
    Medical Devices
    Country
    USA
    Address
    220 West Germantown Pike, Plymouth Meeting, PA, United States, 19462