NEW YORK, Aug. 3, 2021 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against AdaptHealth Corp. f/k/a DFB Healthcare Acquisitions Corp. («DFB,» «AdaptHealth,» or the «Company») (NASDAQ: AHCO; AHCOW) and certain of its officers. The class action, filed in the United States District Court for the Eastern District of Pennsylvania, and docketed under 21-cv-03382, is 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 (the «Class Period»), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the «Exchange Act») and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired AdaptHealth securities during the Class Period, you have until September 27, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
AdaptHealth, together with its subsidiaries, provides home healthcare equipment, medical supplies, and home and related services in the U.S.
Prior to its business combination with AdaptHealth, as described below, DFB was a special purpose acquisition company («SPAC»), also known as a blank check company, incorporated for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization, or similar business combination with one or more businesses or entities.
On July 8, 2019, DFB announced that it had entered into a definitive agreement for a business combination with AdaptHealth Holdings, LLC, the third largest distributor of home medical equipment in the U.S. (the «Merger»). Upon the closing of the Merger, DFB renamed itself «AdaptHealth Corp.» and its Class A common stock began trading on the Nasdaq Global Select market under the ticker symbol «AHCO.»
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose 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; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On July 19, 2021, before the market opened, Jehoshaphat Research published a report alleging that AdaptHealth is a «roll-up» company, or a company that is built primarily through the acquisition of smaller companies with common services or products, that obscures its organic growth by «[r]etroactively changing past organic growth numbers to be higher, with no disclosure about the change.» Specifically, the report stated that «[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.» Indeed, the report suggested that AdaptHealth’s manipulation of its organic growth trajectory was «a blatant violation of non-GAAP disclosure rules, for which companies get into huge trouble.»
On this news, AdaptHealth’s stock price fell $1.51 per share, or 5.93%, to close at $23.96 per share on July 19, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP