AdaptHealth ($AHCO) $35M Investor Settlement
AdaptHealth has agreed to settle $35 million with $AHCO investors to resolve claims that it boosted revenue by overbilling Medicare for diabetes products and giving a false picture of growth.
In 2023, AdaptHealth faced claims that it had overstated revenue by using outdated billing codes for newer diabetes devices, which made its diabetes business appear stronger than it actually was. After these issues came to light, $AHCO shares fell by about 27%, and investors later filed a lawsuit.
August 4, 2020 – February 27, 2023: AdaptHealth promoted strong growth in diabetes and conducted an SPO.
January 5, 2021: AdaptHealth raised ~$264M through a secondary public offering.
February 27, 2023: The company reported Q4 loss and slashed 2023 guidance; $AHCO dropped 27%.
October 24, 2023: Investors filed a class action lawsuit against AdaptHealth.
February 2, 2026: AdaptHealth agreed to a $35 million settlement to resolve investor claims.
AdaptHealth is a provider of home medical equipment focused on chronic disease care, including diabetes products such as continuous glucose monitors (CGMs).
Between August 2020 and early 2023, the company reported strong growth in its diabetes segment.
During this period, AdaptHealth stated that organic growth in its diabetes business was driven by increased demand for CGMs and expanded Medicare coverage.
However, later disclosures raised questions about how some of that revenue was generated. According to those disclosures, the company billed Medicare for newer CGM devices using reimbursement codes originally designed for older blood glucose monitors, which carried higher payment rates at the time.
The issue became more visible as Medicare reimbursement rules evolved and billing scrutiny increased, putting pressure on the company’s reported margins and growth assumptions.
On February 27, 2023, AdaptHealth reported a surprise fourth-quarter loss and sharply reduced its full-year 2023 guidance in an earnings release and conference call.
Management cited reimbursement pressure, operational challenges, and changes in its diabetes business. Following the announcement, $AHCO fell approximately 27% in a single trading day.
After these disclosures, investors filed a lawsuit claiming that AdaptHealth failed to fully disclose the risks tied to Medicare reimbursement and the sustainability of its diabetes segment growth.
What Can Investors Expect Now?
AdaptHealth has agreed to settle $35 million with $AHCO investors to resolve claims that it overstated its revenue by improperly billing Medicare for diabetes-related products and misrepresenting its organic growth.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons and entities who purchased or otherwise acquired the common stock of AdaptHealth Corp. during the period from August 4, 2020 through November 7, 2023, inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.27 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.08 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.