In re Adeptus Health Securities Litigation
|Court:||United States District Court of the Eastern District of Texas|
|Case Number:||No. 6:16-cv-1243|
|Judge:||Hon. Robert W. Schroeder|
|Class Period:||06/25/2014 - 11/01/2016|
|Case Contacts:||Jeremy P. Robinson, Abe Alexander|
Securities fraud class action filed on behalf of a class of persons and entities who purchased or acquired the securities of Adeptus Health Inc. (“Adeptus” or the “Company”) between June 25, 2014 and April 18, 2017 (the "Class Period"), including purchasers of Adeptus common stock in one or more of the Company’s public offerings. On August 31, 2017, the Honorable Robert W. Schroeder appointed BLB&G client the St. Paul Teachers’ Retirement Fund Association (the “Fund”) as Lead Plaintiff and BLB&G as Lead Counsel for the Class.
The action arises from misstatements made by Adeptus and its executives overstating the Company’s profitability and concealing a number serious strains on its liquidity. Among other things, Defendants’ misstatements concealed (1) that Adeptus routinely overbilled patients for minor treatments, leading insurers to reject claims for reimbursement; (2) serious internal control failures that materially affected the Company’s revenue collection; and (3) that the Company’s efforts to partner with existing health systems were creating a serious drag on the Company’s liquidity. Defendants’ misstatements caused Adeptus’ share price to soar during the Class Period. Capitalizing on Adeptus’ artificially inflated stock price, the Company’s former CEO and CFO alone were able to reap over $50 million by selling their personally held Adeptus shares at artificially inflated prices.
Investors learned about Adeptus’ misconduct and the Company’s true financial condition through a series of corrective disclosures, including the Company’s ultimate bankruptcy. These corrective disclosures wiped out hundreds of millions of dollars in shareholder value.
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