Robbins Geller Rudman & Dowd LLP announces that the AdaptHealth class action lawsuit charges AdaptHealth Corp. f/k/a DFB Healthcare Acquisitions Corp. (NASDAQ: AHCO; AHCOW) and certain of its top executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of AdaptHealth securities between November 11, 2019 and July 16, 2021, inclusive (“Class Period”). The AdaptHealth class action lawsuit (Faille v. AdaptHealth Corp. f/k/a DFB Healthcare Acquisitions Corp., No. 21-cv-03382) was commenced on July 29, 2021 in the Eastern District of Pennsylvania and is assigned to Judge Harvey Bartle, III.
If you wish to serve as lead plaintiff of the AdaptHealth class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at email@example.com.
CASE ALLEGATIONS: Prior to its business combination with AdaptHealth, as described below, DFB was a special purpose acquisition company (or “SPAC”), also known as a blank check company. On July 8, 2019, DFB announced that it had entered into a definitive agreement for a business combination with AdaptHealth, the third largest distributor of home medical equipment in the U.S. Upon the closing of the merger, DFB renamed itself “AdaptHealth Corp.”
The AdaptHealth class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and 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 U.S. Securities and Exchange Commission (“SEC”) regulations; (ii) accordingly, AdaptHealth had materially overstated its financial prospects; and (iii) as a result, AdaptHealth’s public statements were materially false and misleading at all relevant times.
On July 19, 2021, 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.” 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 nearly 6%, damaging investors.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased AdaptHealth securities during the Class Period to seek appointment as lead plaintiff in the AdaptHealth class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the AdaptHealth class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the AdaptHealth class action lawsuit. An investor’s ability to share in any potential future recovery of the AdaptHealth class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit https://www.rgrdlaw.com/firm.html for more information.
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Robbins Geller Rudman & Dowd LLP
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J.C. Sanchez, 800-449-4900