NEW YORK, Oct. 27, 2016 /PRNewswire-USNewswire/
-- Robbins Geller Rudman & Dowd LLP ("Robbins Geller")
(http://www.rgrdlaw.com/cases/adeptus/) today announced that a
class action has been commenced by an institutional investor on
behalf of purchasers of Adeptus Health Inc. ("Adeptus Health" or
the "Company") (NYSE: ADPT) Class A common shares (hereinafter the
"common shares" or "common stock") 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 the Company's common shares between
April 23, 2015 and November 16, 2015, inclusive (the "Class
Period"), seeking to pursue remedies under the Securities Exchange
Act of 1934 (the "Exchange Act"). This action was filed in
the United States District Court for the Eastern District of
Texas and is captioned Oklahoma
Law Enforcement Retirement System v. Adeptus Health Inc., et
al., No. 6:16-cv-01243 (E.D.
Tex.).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff's counsel, Samuel H. Rudman
or Mario Alba Jr. of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a
member of this class, you can view a copy of the complaint as filed
at http://www.rgrdlaw.com/cases/adeptus/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges Adeptus Health, certain of its officers
and directors and the underwriters of its SPO with violations of
the Securities Act and/or the Exchange Act. Adeptus Health
owns and operates a network of independent freestanding emergency
rooms in the United States.
The complaint alleges that 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: (a) Adeptus Health had been
engaging in widespread predatory billing practices, particularly
with respect to lower acuity level patients; (b) Adeptus
Health'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; (c) the Company's financial
statements had not been prepared in conformity with generally
accepted accounting principles; (d) contrary to defendants'
representations about the Company's practice of referring lower
acuity patients to urgent care facilities, Adeptus Health routinely
treated lower acuity patients and excessively billed them for the
services it rendered; and (e) as a result of the foregoing,
defendants lacked a reasonable basis for their positive statements
about Adeptus Health's then-current business and future financial
prospects.
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'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. In
response to the airing of the KUSA investigative report, the price
of Adeptus Health common stock plummeted more than 22% on very
heavy trading volume, falling from $59.87 per share on November 16, 2015 to $46.50 per share on November 17, 2015.
Plaintiff seeks to recover damages on behalf of all purchasers
of Adeptus Health common stock during the Class Period and/or
traceable to the SPO (the "Class"). The plaintiff is
represented by Robbins Geller, which has extensive experience in
prosecuting investor class actions including actions involving
financial fraud.
Robbins Geller is widely recognized as one of the leading law
firms advising U.S. and international institutional investors in
securities litigation and portfolio monitoring. With 200
lawyers in 10 offices, Robbins Geller has obtained many of the
largest securities class action recoveries in history and was
ranked first in both the total amount and number of shareholder
class action recoveries in ISS's SCAS Top 50 Report for the last
two years. Robbins Geller attorneys have shaped the law in
the areas of securities litigation and shareholder rights and have
recovered tens of billions of dollars on behalf of the Firm's
clients. Robbins Geller not only secures recoveries for
defrauded investors, it also strives to implement corporate
governance reforms, helping to improve the financial markets for
investors worldwide. Please visit rgrdlaw.com/cases/adeptus/
for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP