SAN DIEGO, Oct. 23, 2024 (GLOBE NEWSWIRE) — A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired Acadia Healthcare Company, Inc. (NASDAQ: ACHC) (“Acadia” or the “Company”) securities between February 28, 2020 and September 26, 2024, inclusive (the “Class Period”), charging the Company and certain of its current and former senior executives with violations of the federal securities laws (collectively, “Defendants”).
Acadia investors have until December 16, 2024 to seek appointment as lead plaintiff of the Acadia class action lawsuit.
If you purchased or acquired Acadia securities between February 28, 2020 and September 26, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/acadia/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Hani Farah by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Acadia provides behavioral healthcare services across the United States, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers, and outpatient clinics.
The Acadia lawsuit alleges that Defendants made false and misleading statements and concealed material adverse facts concerning Acadia’s business operations, regulatory and litigation risks, and internal controls. Specifically, Defendants failed to disclose: (i) Acadia’s business model centered on holding vulnerable people against their will in its facilities, including when it was not medically necessary to do so; (ii) patients were abused while in Acadia’s facilities; and (iii) Acadia defrauded insurance providers into paying for patients to remain in its facilities when not medically necessary.
The truth emerged on September 1, 2024, when The New York Times published an article entitled, “How a Leading Chain of Psychiatric Hospitals Traps Patients” (the “Article”). The Article detailed how, among other things, Arcadia “has lured patients into facilities and held them against their will”; “[o]nce Acadia won more insurance days for patients, it often would not release them before their insurance ran out”; and “police officers witnessed three [Acadia psychiatric hospital] employees assaulting a patient.”
On this news, Acadia stock fell $3.72 per share, or 4.5%, on September 3, 2024.
Then, on September 27, 2024, Acadia filed a current report on Form 8-K with the U.S. Securities and Exchange Commission (“SEC”), in which Defendants stated that Acadia “received a voluntary request for information from the United States Attorney’s Office for the Southern District of New York as well as a grand jury subpoena from the United States District Court for the Western District of Missouri (W.D. Mo.) related to its admissions, length of stay and billing practices” and that it “anticipate[d] receiving similar document requests from the [SEC].”
On this news, Acadia’s stock fell by $12.38 per share, or 16.36%, on September 27, 2024.
About DiCello Levitt
At DiCello Levitt, we are dedicated to achieving justice for our clients through class action, business-to-business, public client, whistleblower, personal injury, civil and human rights, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases – whether by trial, settlement, or otherwise – for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations – and our capital – on the line for our clients.
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