Adeptus Health Inc (NYSE: ADPT) Investor Securities Class Action Lawsuit 10/27/2016

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Company Name(s): 
Adeptus Health
Case Name: 
Adeptus Health Shareholder Class Action Lawsuit 10/27/2016
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NYSE: ADPT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/27/2016
Class Period Begin: 
06/25/2014
Class Period End: 
03/01/2017
Court of Filing: 
U.S. District Court for the Eastern District of Texas
Deadline To File for Lead: 
12/26/2016
Date Settled: 
01/09/2020
Settlement Amount: 
$44,000,000
Deadline to Participate in Settlement: 
06/08/2020
Summary: 

January 9, 2020 - The court preliminarily approved the settlement.

November 26, 2019 - Parties filed a stipulation of settlement.

February 5, 2018 - Defendants filed a motion to dismiss.

November 21, 2017 - The lead plaintiffs filed an amended consolidated complaint on behalf of investors who purchased Adeptus Health Inc (NYSE: ADPT) common shares between June 25, 2014 and March 1, 2017. The lead plaintiffs alleges that the defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by issuing false and misleading statements between June 25, 2014 through March 1, 2017.

August 31, 2017 - Lead plaintiffs and lead counsel were appointed and all cases were consolidated.

June 23, 2017 - Cases were consolidated.

December 27, 2016 - Lead plaintiff motions were filed.

October 27, 2016 - An investor in shares of Adeptus Health Inc (NYSE: ADPT) filed a lawsuit in the U.S. District Court for the Eastern District of Texas over alleged violations of Federal Securities Laws by Adeptus Health Inc in connection with certain allegedly false and misleading statements made between April 23, 2015 and November 16, 2015.

According to the complaint the plaintiff was filed on behalf of purchasers of Adeptus Health Inc (NYSE: ADPT) Class A common shares pursuant and/or traceable to the Company's secondary public offering (the "SPO") on or about July 31, 2015, seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act"), as well as purchasers of Adeptus Health Inc (NYSE: ADPT) shares between April 23, 2015 and November 16, 2015, seeking to pursue remedies under the Securities Exchange Act of 1934.

More specifically, the plaintiff claims that the defendants misrepresented and failed to disclose material adverse facts regarding the Company's business and prospects, which were known to defendants or recklessly disregarded by them, including that Adeptus Health had been engaging in widespread predatory billing practices, particularly with respect to lower acuity level patients, that Adeptus Health Inc's predatory billing practices subjected the Company to numerous known, but undisclosed, risks, including monetary risks, reputational risks, risks associated with improper financial reporting, civil or criminal sanctions, and even exclusion from federal and state healthcare programs, that the Company's financial statements had not been prepared in conformity with generally accepted accounting principles, that contrary to defendants' representations about the Company's practice of referring lower acuity patients to urgent care facilities, Adeptus Health Inc routinely treated lower acuity patients and excessively billed them for the services it rendered, and that as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about Adeptus Health Inc's then-current business and future financial prospects.

Adeptus Health Inc reported that its annual Total Revenue rose from $102.88 million in 2013 to $209.79 million in 2014.

Shares of Adeptus Health Inc (NYSE: ADPT) grew from $31.20 per share in January 2015 to as high as $120.88 per share in August 2015.

On November 17, 2015, KUSA, an NBC-affiliated television station located in Denver, Colorado, aired a 9WANTS To Know investigative report about the billing practices at Adeptus Health Inc's Colorado First Choice emergency rooms ("ERs"). According to the report, which had been based on "months" of investigation, the Company's First Choice ERs engaged in a pattern and practice of predatory overbilling.

Shares of Adeptus Health Inc (NYSE: ADPT) declined to as low as $45.50 per share on November 17, 2015.