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AHCO.US
id: 857

AdaptHealth ($AHCO) $35M Investor Settlement

Eligible claimants can submit their claims for compensation.
$35,000,000
Cash Settlement
E.D. Pennsylvania
Court
2:23-cv-04104
Case number
08/04/2020
Class period Start
11/07/2023
Class period End
07/02/2026
Claim deadline
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.

Outline:


In 2023, AdaptHealth faced claims that it had overstated revenue by using outdated billing codes for newer diabetes devices, which made its diabetes business appear stronger than it actually was.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.

Timeline:

  • 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.

Background:


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.
Case Type
US Securities Class Action
Case Status
Accepting Claims
Alleged Offence
Misleading Statements, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.27
Filing date
10/24/2023
Lead Plaintiff Deadline
12/23/2023
Plaintiffs
Allegheny County Employees' Retirement System
Attorneys
Bernstein Litowitz Berger & Grossmann LLP (New York, NY), Kaskela Law LLC (Newtown Square, PA)
Defendants
Alan Quasha, Bradley Coppens, Dale Wolf, David S. Williams, III, Dr. Susan Weaver, Frank J. Mullen, Jason Clemens, Joshua Parnes, Luke Mcgee, Richard Barasch, Stephen P. Griggs
Administrator
Kroll
Settlement agreement date
2025-12-19
Court hearing date
05/13/2026
Exclusion deadline
04/22/2026
Objection deadline
04/22/2026
Attorney fee
$9,100,000
Trades matching type
FIFO

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