AdaptHealth
Settlement of Delaware County Employees Retirement System and Bucks County Employees’ Retirement System v. AdaptHealth Corp. f/k/a DFB Healthcare Acquisitions Corp., et al., No. 2:21-cv-03382-HB
The parties settled this action, which was pending in the United States District Court for the Eastern District of Pennsylvania. The settlement provides for the payment of $51 million and one million shares of AdaptHealth Corp. (“AdaptHealth” or the “Company”) owned stock for the benefit of eligible Settlement Class Members. Lead Plaintiffs Bucks County Employees’ Retirement System and Delaware County Employees Retirement System alleged Defendants made numerous materially false and misleading statements and omissions regarding the methodology used to calculate AdaptHealth’s organic growth and Defendant Luke McGee’s involvement in an alleged foreign tax fraud arising from certain past private activity. These false and misleading statements and omissions caused the price of the Company’s common stock to trade at artificially inflated prices, until the market learned of the false and misleading nature of the statements and omissions, and the Company’s stock price declined on April 13, 2021, and July 19, 2021.
The Settlement Class consists of all Persons who purchased or otherwise acquired AdaptHealth common stock or call options on AdaptHealth common stock or sold put options on AdaptHealth common stock during the Settlement Class Period. Excluded from the Settlement Class are: (a) Defendants; (b) any Person who served as an officer or director of AdaptHealth during the Settlement Class Period; (c) the Immediate Family Members of Defendants and the excluded officers and directors; (d) any firm, trust, corporation, or other entity in which any excluded person or entity has, or had during the Settlement Class Period, a controlling interest; (e) the legal representatives, parents, subsidiaries, agents, affiliates, heirs, successors-in-interest, predecessors, or assigns of any such excluded person or entity, in their capacities as such; and (f) any Person who would otherwise be a Settlement Class Member but who validly and timely requested exclusion in accordance with the requirements set by the Court. Notwithstanding the foregoing, any AdaptHealth employee retirement, savings, or benefit plan shall not be deemed an affiliate of any Defendant, except that any Claim submitted on behalf of any AdaptHealth employee retirement, savings, or benefit plan shall be pro-rated to exclude the proportion owned by Defendants and other specifically excluded persons or entities.
The settlement was approved by the Court on July 10, 2024.
If you have any questions about the settlement or the litigation, please contact the Shareholder Relations Department at 1-800-449-4900.
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