AdaptHealth $35 Million Securities Class Action Settlement

Investors who purchased or otherwise acquired AdaptHealth Corp. common stock between Aug. 4, 2020, and Nov. 7, 2023, may be eligible to claim a cash payment from a class action settlement.

AdaptHealth Corp. and some of its senior officers, directors and underwriters of AdaptHealth's Jan. 5, 2021, secondary public offering agreed to pay $35 million to settle a securities class action lawsuit alleging they made materially false and misleading statements and omissions. The lawsuit claimed AdaptHealth misrepresented its billing practices, compliance systems and technology, ability to integrate acquisitions,2t revenues and EBITDA.

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired AdaptHealth Corp. common stock (Nasdaq: AHCO) during the period from Aug. 4, 2020, through Nov. 7, 2023, inclusive.

Additional details

• Both individuals and entities can be class members.
• Each separate legal entity or separately managed account must submit a separate claim.
• The beneficial owner, not the record owner, must submit the claim.
• Joint beneficial owners must each sign the claim form.
• Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide proof of authority.
• Participants in and beneficiaries of any ERISA-covered employee retirement or benefit plan should not include AdaptHealth securities transactions made through an employee plan on an individual claim form.
• Plan trustees must submit claims for employee plan transactions.

How much can class members get?

The total settlement fund is $35,000,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired during the class period
• The timing of each purchase, sale and holding
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average distribution per eligible share is $0.27 before deductions for court-approved fees, expenses and costs.
• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
• Recognized loss amounts are based primarily on the difference in artificial inflation at the time of purchase and at the time of sale as set forth in the plan of allocation's inflation table (pages 20-21 of the settlement notice).
• The settlement administrator will apply different formulas depending on when class members purchased and sold their shares.
• For shares purchased from Aug. 4, 2020, through Nov. 6, 2023, and sold prior to the close of trading on March 1, 2022, the recognized loss is $0.
• For shares purchased from Aug. 4, 2020, through Nov. 6, 2023, and sold from March 2, 2022, through Nov. 6, 2023, the recognized loss is the lesser of the difference in artificial inflation between the purchase and sale dates or the purchase price minus the sale price.
• For shares purchased from Aug. 4, 2020, through Nov. 6, 2023, and sold on Nov. 7, 2023, the recognized loss is the least of the difference in artificial inflation between the purchase and sale dates, the purchase price minus $7.69 or the purchase price minus the sale price.
• For shares purchased from Aug. 4, 2020, through Nov. 6, 2023, and sold from Nov. 8, 2023, through the close of trading on Feb. 2, 2024, the recognized loss is the least of the artificial inflation on the date of purchase, the purchase price minus the average closing price from Nov. 7, 2023, through the date of sale or the purchase price minus the sale price.
• For shares purchased from Aug. 4, 2020, through Nov. 6, 2023, and held as of the close of trading on Feb. 2, 2024, the recognized loss is the lesser of the artificial inflation on the date of purchase or the purchase price minus $7.63.
• For shares purchased on Nov. 7, 2023, the recognized loss is $0.

• The settlement administrator will match all purchases and sales on a first in, first out basis.
• If a claimant had a net market gain during the class period, the recognized claim is $0.
• The settlement administrator will set any recognized loss that calculates to a negative number or zero to $0.
• If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim an AdaptHealth securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is July 2, 2026.

Settlement administrator’s mailing address: AdaptHealth Securities Litigation, c/o Kroll Settlement Administration, P.O. Box 5090, New York, NY, 10150-5090

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holdings, purchase, acquisition and sale information, including:

• Holdings of AdaptHealth common stock as of the opening of trading on Aug. 4, 2020
• Purchases and acquisitions from Aug. 4, 2020, through Nov. 7, 2023
• Purchases and acquisitions from Nov. 8, 2023, through Feb. 2, 2024
• Sales from Aug. 4, 2020, through Feb. 2, 2024
• Holdings as of the close of trading on Feb. 2, 2024

Class members must also provide documentation to support their transactions in AdaptHealth common stock. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing the transactional and holding information found in a confirmation slip or account statement

Payout options

• Physical check

$35 million settlement fund

The $35,000,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $8,750,000
• Attorneys' expenses: Up to $350,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: April 22, 2026
• Fairness hearing: May 13, 2026
• Deadline to file a claim: July 2, 2026

When is the AdaptHealth securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged AdaptHealth Corp. and some of its senior officers, directors and underwriters made materially false and misleading statements and omissions regarding the company's billing practices, compliance systems, ability to integrate acquisitions, revenues and EBITDA. The plaintiffs claimed these misrepresentations violated federal securities laws and artificially inflated the price of AdaptHealth common stock.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice
2. Settlement website FAQ page
3. Claim form