PHILADELPHIA, Nov. 18, 2024 (GLOBE NEWSWIRE) -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against Acadia Healthcare Company, Inc. (“Acadia” or the “Company”) (NASDAQ: ACHC) on behalf of purchasers of Acadia securities between February 28, 2020 through October 18, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired ACADIA securities during the Class Period may, no later than DECEMBER 16, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Peter Hamner at phamner@bm.net or (215) 875-3048, or CLICK HERE.
Acadia, headquartered in Franklin, Tennessee, provides behavioral healthcare services. It develops and operates acute inpatient psychiatric facilities, residential recovery facilities, eating disorder facilities, comprehensive treatment centers, and residential treatment centers.
According to the lawsuit, throughout the Class Period, Acadia and its senior executives misrepresented that its financial results were driven by insurance fraud which involved, among other things, holding patients in Acadia’s facilities against their will. including in cases where it was not medically necessary to do so.
On September 1, 2024, the New York Times published an article titled “How a Leading Chain of Psychiatric Hospitals Traps Patients.” According to that publication’s investigation, Acadia’s financial performance was premised on a “disturbing practice” – namely, the Company “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 stock fell $3.72 per share, or 4.5%, to close at $78.21 per share on September 3, 2024.
On September 27, 2024, Acadia disclosed that it had received a request for information from the U.S. Attorney’s Office for the Southern District of New York and a grand jury subpoena from the U.S. District Court for the Western District of Missouri, and that it expected similar requests from the U.S. Securities and Exchange Commission related to the Company’s patient admissions, length of stay of its patients, and its billing practices. On this news, Acadia shares declined more than 16% – $12.38 per share – from a closing price of $75.66 per share on September 26, 2024 to a close of $63.28 per share on September 27, 2024.
Finally, on October 18, 2024, the New York Times reported that the Veterans Affairs Department was investigating Acadia for potential fraud against the U.S. government’s health insurance programs by holding patients longer than is medically necessary. On this news, shares fell $7.29 per share, or 12%, from a close of $59.32 per share on October 17, 2024 to a close of $52.03 per share on October 18, 2024.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contact:
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Peter Hamner
Berger Montague PC
(215) 875-3048
phamner@bm.net
