NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Middle District of Tennessee on behalf of those who acquired Acadia Healthcare Company, Inc. (“Acadia” or the “Company”) (NASDAQ: ACHC) securities during the period of February 28, 2020 to September 26, 2024, inclusive (“the Class Period”). Investors have until December 16, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On September 1, 2024, The New York Times published a report on Acadia, one of the largest chains of psychiatric hospitals in the nation. The article stated that a New York Times investigation found that “Acadia has lured patients into its facilities and held them against their will, even when detaining them was not medically necessary. 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, according to records reviewed by The Times. In some cases, judges have intervened to force Acadia to release patients.” Following this news, the price of Acadia shares declined by $3.72 per share from $81.93 per share on September 1, 2024, to close at $78.21 on September 3, 2024.
The lawsuit alleges that Acadia made false and/or misleading statements and/or failed to disclose that: (i) its 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; (ii) while in Acadia facilities, many patients were subjected to abuse; and (iii) Acadia deceived insurance providers into paying for patients to stay in its facilities when it was not medically necessary.
If you purchased or otherwise acquired Acadia securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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