LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Acadia Healthcare Company Inc. (“Acadia” or the “Company”) (NASDAQ: ACHC) securities between February 28, 2020 and September 26, 2024, inclusive (the “Class Period”). Acadia investors have until December 16, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On September 1, 2024, The New York Times reported that though Acadia has “lured patients into its facilities and held them against their will, even when detaining them was not medically necessary,” and that “in at least 12 of the 19 states where Acadia operates psychiatric hospitals, dozens of patients, employees, and police officers have alerted the authorities that the company was detaining people in ways that violated the law.”
On this news, Acadia’s stock price fell $3.72, or 4.5%, to close at $78.21 per share on September 3, 2024, thereby injuring investors.
Then, on September 27, 2024, the Company revealed it had “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 related to its admissions, length of stay and billing practices.”
On this news, Acadia Healthcare’s stock price fell $12.38, or 16.36%, to close at $63.28 per share on September 27, 2024, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Acadia’s business model centered on holding vulnerable people against their will in its facilities, including in cases where it was not medically necessary to do so; (2) while in Acadia facilities, many patients were subjected to abuse; (3) Acadia deceived insurance providers into paying for patients to stay in its facilities when it was not medically necessary; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Acadia securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com.
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