AdaptHealth Corp.

  • Active

Investigation
07/29/2021

Initial Lawsuit
07/29/2021

Lawsuit Progression
10/14/2021

Investigation

  • Continous Holding
    November 11, 2019 to July 16, 2021
  • Proposed Claim
    Securities Violation

Did AdaptHealth mislead investors in connection with its going public transaction and past organic growth?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

Short Thesis: a "Roll-up"?

07/19/2021

Research Report (Short)

Jehoshaphat Research publishes a short thesis report alleging that AdaptHealth was a “roll-up” with “obscure” organic growth accounting: “[w]hile management claims (and consensus estimates reflect) an organic growth trajectory of 8-10%, AHCO is in fact experiencing double-digit organic decline. It is also, in our opinion, taking steps to obscure that decline which are expressly forbidden by the SEC.”

“In our research, we spoke with former AHCO executives. One said the M&A process was a “barn fire,” and the overall business is a “house of cards.” Another described an unsustainably aggressive push to pile up assets using excessive leverage. One said that management had “no f**g clue” what organic growth was.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$23.96 $25.47 $-1.51 -5.93%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 07/29/2021

An AdaptHealth shareholder filed a federal securities class action on behalf of a class consisting of all persons and entities (other than defendants) that purchased or otherwise acquired AdaptHealth securities between November 11, 2019 and July 16, 2021, both dates inclusive.

  • Filing Date
    07/29/2021
  • Class Period
    11/11/2019 to 07/16/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Holzer & Holzer, LLC
    Pomerantz LLP
    The Rosen Law Firm, P.A.
  • Case Title
    Faille Jr. v. Adapthealth Corp. f/k/a DFB Healthcare Acquisitions Corp. et al
  • Docket Number
    2:21-cv-03382
  • Court
    Pennsylvania Eastern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) AdaptHealth had misrepresented its organic growth trajectory by retroactively inflating past organic growth numbers without disclosing the changes, in violation of SEC regulations;
(ii) accordingly, the Company had materially overstated its financial prospects;
(iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Defendants

  • Company
    AdaptHealth Corp.
  • Chief Executive Officer
    Luke McGee
  • Chief Executive Officer
    Stephen P. Griggs
  • Chief Financial Officer
    Gregg Holst
  • Chief Financial Officer
    Jason Clemens

Lawsuit progression

  • Docket Number
    2:21-cv-03382
  • Court
    Pennsylvania Eastern District Court

Lead Counsel

10/14/2021

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Robbins Geller Rudman & Dowd LLP
  • Lead Plaintiff
    Group of Funds
  • Free File
    Order for lead

Amended Complaint

11/22/2021

This is a federal securities class action on behalf of a class consisting of all persons and entities other than defendants that purchased or otherwise acquired AdaptHealth securities between November 8, 2019 and July 16, 2021, both dates inclusive.

  • Updated Class Period
    11/08/2019 to 07/16/2021
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

01/20/2022

A motion to dismiss was filed with the court.

06/09/2022

Court Denied the motion to dismiss.

[stockdio-historical-chart symbol=”AHCO” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

More

More Cases & Investigations
Privacy Policy
© Copyright 2025 Brios Services LLC
Terms & Conditions