NEW YORK, Oct. 26, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased or otherwise acquired AdaptHealth Corp. (“AdaptHealth Corp.” or the “Company”) (NASDAQ: AHCO) alleging violations of the federal securities laws by AdaptHealth Corp. (“AdaptHealth” or the “Company”), certain of the Company’s current and former senior executives and directors, and certain underwriters of the Company’s secondary public offering conducted on or around January 5, 2021 (the “SPO”). The action is brought on behalf of all persons or entities who purchased or otherwise acquired: (i) AdaptHealth common stock between August 4, 2020 and February 27, 2023, inclusive (the “Class Period”); and/or (ii) AdaptHealth common stock pursuant and/or traceable to the SPO.  

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. The complaint further alleges that in order 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 alleged misrepresentations, AdaptHealth common stock traded at artificially inflated prices during the Class Period.

The complaint also alleges that, 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 complaint further alleges that the Company also reduced its guidance for 2023, lowering revenue expectations it had provided just seven weeks earlier by over 1.5%. The complaint lastly alleged that 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.

Investors who purchased or otherwise acquired shares of AdaptHealth Corp. should contact the Firm prior to the December 26, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.

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