NEW YORK, August 11, 2021 / PRNewswire / – Pomerantz LLP Announces Class Action Lawsuit 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 United States District Court of the Eastern District of Pennsylvania, and listed under 21-cv-03382, is in the name of a class made up of all persons and entities other than Defendants who have 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 in violation of 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 rules 10b-5 promulgated by virtue of it, against the Company and certain of its senior executives.
If you are a shareholder who purchased or otherwise acquired securities of AdaptHealth during the Class Period, you have up to September 27, 2021 ask the court to appoint you as the principal 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 [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
[Click here for information about joining the class action]
AdaptHealth, along with its subsidiaries, provides home care equipment, medical supplies, and home and related services in the United States.
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, exchange of shares, acquisition of assets, purchase, recapitalization, reorganization or similar business combination with one or more companies or entities.
On July 8, 2019, DFB announced that it has entered into a definitive agreement for a business combination with AdaptHealth Holdings, LLC, the third largest distributor of home medical equipment in the United States (the “Merger”). Upon closing of the Merger, DFB rebranded itself as “AdaptHealth Corp. and its Class A common shares began trading on the Nasdaq Global Select market under the symbol “AHCO”.
The complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading representations regarding the Company’s business, operational and compliance policies. Specifically, the defendants made false and / or misleading statements and / or failed to disclose that: (i) AdaptHealth distorted its organic growth trajectory by retroactively inflating past organic growth numbers without disclosing the changes, in violation SEC regulations; (ii) as a result, the Company had substantially overestimated its financial outlook; and (iii) accordingly, the Company’s public statements were materially false and misleading at all material times.
On July 19, 2021, before the market opens, Josaphat Research released a report alleging that AdaptHealth is a ‘roll-up’ business, or a business built primarily by acquiring small businesses with common services or products, which masks its organic growth by “[r]closely changing organic growth numbers past to be higher, without any disclosure of the change. Specifically, the report stated that “[w]While management claims (and consensus estimates reflect) an 8-10% organic growth path, AHCO is actually experiencing double-digit organic decline. In our opinion, it is also taking steps to mask this decline which are expressly prohibited by the SEC. Indeed, the report suggests that AdaptHealth’s manipulation of its organic growth trajectory was “a blatant violation of non-compliant disclosure rules as companies find themselves in huge trouble.”
On this news, the AdaptHealth share 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 recognized as one of the leading firms in the areas of corporate law, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class actions bar, the Pomerantz law firm was a pioneer in the field of class actions in securities. Today, more than 80 years later, Pomerantz continues the tradition it established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext 7980
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SOURCE Pomerantz LLP