The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Acadia Healthcare Company, Inc. (NASDAQ: ACHC) publicly traded securities between February 28, 2020 and September 26, 2024, inclusive (the “Class Period”), have until December 16, 2024 to seek appointment as lead plaintiff of the Acadia Healthcare class action lawsuit. Captioned Kachrodia v. Acadia Healthcare Company, Inc., No. 24-cv-01238 (M.D. Tenn.), the Acadia Healthcare class action lawsuit charges Acadia Healthcare and certain of Acadia Healthcare’s top current and former executives with violations of the Securities Exchange Act of 1934.
“investigation found that some of that success was built on a disturbing practice: Acadia has lured patients into its facilities and held them against their will, even when detaining them was not medically necessary.”Post this
The Acadia Healthcare class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Acadia Healthcare’s business model centered on holding vulnerable people against their will in Acadia Healthcare’s facilities, including in cases where it was not medically necessary to do so; (ii) while in Acadia Healthcare facilities, many patients were subjected to abuse; and (iii) Acadia Healthcare deceived insurance providers into paying for patients to stay in Acadia Healthcare’s facilities when it was not medically necessary.
The Acadia Healthcare class action lawsuit further alleges that on September 1, 2024, The New York Times published an article entitled “How a Leading Chain of Psychiatric Hospitals Traps Patients,” which revealed that The New York Times’s “investigation found that some of that success was built on a disturbing practice: Acadia has lured patients into its facilities and held them against their will, even when detaining them was not medically necessary.” On this news, the price of Acadia Healthcare stock fell more than 4%, according to the complaint.
Then, on September 27, 2024, the Acadia Healthcare class action lawsuit further alleges that Acadia Healthcare revealed that “[o]n September 24, 2024, Acadia Healthcare . . . 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,” further disclosing that “Acadia anticipates receiving similar document requests from the U.S. Securities and Exchange Commission and may receive additional document requests from other government agencies.” On this news, the price of Acadia Healthcare stock fell more than 16%, according to the Acadia Healthcare class action lawsuit.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Acadia Healthcare publicly traded securities during the Class Period to seek appointment as lead plaintiff in the Acadia Healthcare class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Acadia Healthcare class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Acadia Healthcare class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Acadia Healthcare class action lawsuit.
