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AdaptHealth Shares Drop After Co-CEO Accused of Tax Fraud

Health-care equipment maker AdaptHealth said it put its co-CEO on leave after he was charged with tax fraud in Denmark.
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AdaptHealth  (AHCO) - Get AdaptHealth Corp. Report shares declined on Tuesday after the home-health-care-equipment producer said it put Co-Chief Executive Luke McGee on leave after he was charged with tax fraud in Denmark.

The stock recently traded at $31.37, down 15%. The stock is off from its 52-week high of $41.58, touched on Feb. 1.

“AdaptHealth has learned that authorities in Denmark have formally charged Co-Chief Executive Officer Luke McGee with alleged tax fraud arising from certain past private activity,” the company said in a statement.

“The alleged personal conduct occurred between March 2014 and August 2015 and had no connection to AdaptHealth’s business. 

"AdaptHealth has placed Mr. McGee on unpaid leave from his roles as co-CEO and a director of the company while this matter is pending.”

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The Plymouth Meeting, Pa., company's board "takes this matter very seriously and is monitoring the situation closely in consultation with its legal advisors,” the company said.

“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 is the product of a 2019 SPAC merger with DFB Healthcare Acquisition.

In December, AdaptHealth said it agreed to acquire fellow home-health-care-equipment provider AeroCare Holdings in a transaction valued at about $2 billion.

In other health news on Tuesday, the Centers for Disease Control and Prevention and the Food and Drug Administration said they had suspended the use of Johnson & Johnson’s COVID-19 vaccine out of an abundance of caution due to a rare blood-clotting side effect.