According to the law firm press release, 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 June 23, 2017, the Court granted the motion to consolidate cases and transfer this action to the Sherman Division, to be docketed under 17-cv-00449.
On August 31, 2017, the Court appointed Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on November 21, 2017. On February 5, 2018, Defendants filed Motions to Dismiss the consolidated Complaint. On September 12, the Court issued an Order granting in part and denying in part Defendants' Motions to Dismiss. Lead Plaintiffs were given leave to amend the Complaint. Lead Plaintiffs filed an amended Complaint on September 25. On January 31, 2019, Lead Plaintiffs filed a second amended Complaint under seal. On November 26, the parties entered into a Stipulation and Agreement of Settlement. The Court issued an Order preliminarily approving the Settlement on January 9, 2020.