Allegheny County Employees’ Retirement System v. AdaptHealth Corp.

This securities class action lawsuit was brought in the United District Court for the Eastern District of Pennsylvania (the “Court”) 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”).  

Lead Plaintiffs Have Reached a Proposed Settlement of the Action for $35 Million

Lead Plaintiffs, Allegheny County Employees’ Retirement System, International Union of Operating Engineers, Local No. 793, Members Pension Benefit Trust of Ontario, and City of Tallahassee Pension Plan, on behalf of themselves and the Settlement Class, have reached a proposed settlement of the Action for $35,000,000 in cash that, if approved, will resolve the Action (the “Settlement”).

If you are a member of the Settlement Class, your rights will be affected and you may be eligible for a payment from the Settlement.  The Settlement Class consists of:

all Persons who purchased or otherwise acquired AdaptHealth common stock during the period from August 4, 2020 through November 7, 2023, inclusive.

Certain persons and entities are excluded from the Settlement Class by definition (see paragraph 21 of the Notice) or may request exclusion from the Settlement Class pursuant to the instructions set forth in the Notice (see paragraph 47 of the Notice).

Please read the Notice to fully understand your rights and options.  Copies of the Notice and Claim Form can be found in the Case Documents list on the right of this page.  You may also visit the case website, www.AdaptHealth2025SecuritiesLitigation.com, for more information about the Settlement.

To be eligible to receive a payment under the proposed Settlement, you must submit a Claim Form postmarked (if mailed) or submitted on-line by no later than July 2, 2026.

Payments to eligible claimants will be made only if the Court approves the Settlement and a plan of allocation, and only after any appeals are resolved, and after the completion of all claims processing.  Please be patient, as this process will take some time to complete.

IMPORTANT DATES AND DEADLINES

July 2, 2026	Claim Filing Deadline.  Claim Forms must be postmarked (if mailed) or submitted on-line no later than July 2, 2026.
April 22, 2026	Exclusion Deadline.  To exclude yourself from the Settlement Class, you must submit a written request for exclusion postmarked no later than April 22, 2026, in accordance with the instructions in the Notice.
April 22, 2026	Objection Deadline.  Any objections to the proposed Settlement, the proposed Plan of Allocation, or the motion for attorneys’ fees and expenses, must be submitted so they are received no later than April 22, 2026, in accordance with the instructions in the Notice.
May 13, 2026 at 10:00 a.m.	Settlement Hearing.  The Settlement Hearing will be held on May 13, 2026 at 10:00 a.m., before the Honorable Mia R. Perez of the United States District Court for the Eastern District of Pennsylvania, in Courtroom 10-B of the James A. Byrne U.S. Courthouse, 601 Market Street, Philadelphia, PA 19106, or by telephone or videoconference in the discretion of the Court.  The Settlement Hearing will be held by the Court to consider, among other things, whether the proposed Settlement is fair, reasonable, and adequate and should be approved; whether the proposed Plan of Allocation is fair and reasonable and should be approved; and whether Lead Counsel’s motion for attorneys’ fees and expenses should be approved.

 

Background and History of the Litigation

On October 24, 2023, Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”) filed a class action lawsuit in the Court on behalf of its client, Allegheny County Employees’ Retirement System. On May 14, 2024, BLB&G filed the Amended Class Action Complaint (the “Complaint”) on behalf of its clients, Allegheny County Employees’ Retirement System, International Union of Operating Engineers, Local No. 793, Members Pension Benefit Trust of Ontario, and City of Tallahassee Pension Plan. The case is captioned In re AdaptHealth Corp. Securities Litigation, No. 23-cv-4104 (E.D. Pa.). The Complaint is based on an extensive investigation and a careful evaluation of the merits of this case. To view the Complaint, see the Case Documents section of this page.

AdaptHealth’s Alleged Fraud

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 inflated the Company’s revenue through a series of improper and unethical tactics, including overcharging CMS for diabetes equipment, submitting reimbursement claims to insurance providers without proper documentation, altering doctors’ prescriptions and notes, and shipping unwanted and unnecessary medical equipment to patients. Additionally, the Complaint alleges that, while the Company attributed its apparent success to legitimate factors, such as its unique technology that improved the patient experience and critical compliance systems, the Company gutted its compliance systems, never implemented its supposedly vaunted technology systems, and delayed efforts to integrate acquired healthcare business for months or years. The Complaint alleges that to facilitate this scheme, AdaptHealth and certain of its senior executives made numerous false and misleading statements to investors during the Class Period, and that as a result of these misrepresentations, AdaptHealth common stock traded at artificially inflated prices during the Class Period.

The Complaint alleges that the truth about AdaptHealth’s misconduct began to emerge 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.” The Complaint alleges that, as a result of these disclosures, the price of AdaptHealth common stock declined precipitously. Then, on May 9, 2023, AdaptHealth’s stock price fell by an additional 6.4% when the Company issued disappointing earnings results for the first quarter of 2023, which it attributed to a decline in its diabetes business. Finally, on November 7, 2023, the Company wrote down hundreds of millions of dollars in accounting “goodwill” as a result of the acquisitions. After this announcement, AdaptHealth’s stock price fell an additional 23%.