Class Action Lawsuit Against Adeptus Health Alleges Misleading Statements, Securities Violations

A class action lawsuit has been filed against Lewisville-based Adeptus Health Inc. because the company allegedly made false and/or misleading statements, failing to disclose its internal control over financial reporting and the overall status of its business operations.

Bronstein, Gerwirtz & Grossman LLC publicly reminded Adeptus investors that the class action lawsuit had been filed against the free-standing emergency room provider on behalf “of a class consisting of all persons or entities who purchased Adeptus securities April 29, 2016 through March 1, 2017.”

The New York law firm said there’s a May 9 deadline to request lead-plaintiff status in the case. According to Bronstein, the class action seeks to recover damages against Adeptus for “alleged violations of the federal securities laws under the Securities Exchange Act of 1934.”

Moreover, the complaint alleges from April 2016 to March 2017, Adeptus made materially false and/or misleading statements about its business, operations, and prospects. Adeptus also had weaknesses in its internal control over financial reporting, the complaint goes on, in “revenue recognition, accounts receivable, accounting for a contribution to an unconsolidated joint venture, and accounting for loss earnings of unconsolidated joint ventures.”

D CEO Healthcare has reached out to Adeptus Health for comment, but has not yet heard back.

Posted in Finance, News.