AdaptHealth stock plunges after CEO charged with tax fraud in Denmark
Shares of AdaptHealth Corp. plunged 16.7% in morning trading Tuesday, after the maker of home health care equipment said it has learned that co-Chief Executive Luke McGee has been formally charged in Denmark for tax fraud for past private activity. The stock was on track to suffer the biggest one-day drop since the record plunge of 21.2% on March 18, 2020. The company said it has placed McGee, who founded the AdaptHealth in conjunction with Quadrant Management, on unpaid leave. The company said the charges stem from alleged "personal conduct" which occurred between March 2014 and August 2015, and had no connection with the company. In February, following the closing of the acquisition of AeroCare, Stephen Griggs had joined McGee as co-CEO. "The Board has full confidence in the Company's management team, led by current Co-CEO Steve Griggs and President Josh Parnes, and in its ability to ensure that AdaptHealth's business remains strong and to maintain the Company's growth trajectory," AdaptHealth said in a statement. The stock has still rallied 74.2% over the past 12 months, while the S&P 500 has gained 49.6%.
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