SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson Fistel, LLP (www.JohnsonFistel.com) is investigating whether Acadia Healthcare Company, Inc. (NASDAQ: ACHC), any of its executive officers, or others violated securities laws by misrepresenting or failing to timely disclose material, adverse information to investors. The investigation focuses on investors’ losses and whether they may be recovered under the federal securities laws.
What if I purchased Acadia Healthcare common stock? If you purchased securities in the company and suffered losses on your investment, join our investigation now: https://www.johnsonfistel.com/investigations/acadia-healthcare
Or for more information, contact Jim Baker at jimb@johnsonfistel.com or (619) 814-4471.
There is no cost or obligation to you.
What is Johnson Fistel investigating? On September 27, 2024, Acadia Healthcare experienced a significant decline in stock value, with a drop of $12.38 per share, representing a decrease of 16.3%. This substantial market reaction occurred after the company's disclosure of various concerning matters in its Form 8-K filed with the Securities and Exchange Commission on the same day.
In the detailed filing, Acadia Healthcare disclosed the following critical information:
- On September 24, 2024, the company received a voluntary request for information from the United States Attorney’s Office for the Southern District of New York. Concurrently, it also received a grand jury subpoena from the United States District Court for the Western District of Missouri. Both requests pertain to investigations into the company’s procedures regarding patient admissions, duration of stay, and billing practices.
- Additionally, Lakeland Hospital Acquisition, LLC, a subsidiary of Acadia Healthcare, was served a grand jury subpoena by the United States District Court for the Western District of Missouri on the same date. This subpoena is similarly related to inquiries concerning analogous practices.
- Acadia Healthcare further anticipates forthcoming document requests from the U.S. Securities and Exchange Commission, and it does not preclude the possibility of receiving additional requests from other federal or state governmental agencies as investigations proceed.
These revelations follow closely on the heels of a critical report published on September 1, 2024, by The New York Times titled “How a Leading Chain of Psychiatric Hospitals Traps Patients.” The report alleges that Acadia Healthcare has engaged in practices designed to involuntarily admit patients to its facilities and retain them without medical necessity. The investigation by The Times claims that in at least 12 of the 19 states where Acadia operates psychiatric hospitals, numerous complaints have been lodged by patients, employees, and law enforcement officials concerning illegal detention practices by the company.
Furthermore, The Times’ report suggests that the retention of patients at Acadia's facilities was often driven by financial rather than medical motivations, based on statements from over 50 current and former executives and staff members interviewed during their investigation.
These developments raise substantial concerns regarding the operational practices and ethical standards at Acadia Healthcare, potentially implicating the company in serious legal and regulatory challenges. The implications of these inquiries and the associated public and legal scrutiny could bear significant consequences for the company's future operations and financial stability.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com.
Attorney advertising.
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
Johnson Fistel, LLP has paid for the dissemination of this promotional communication, and Frank J. Johnson is the attorney responsible for its content.
