Law Offices of Howard G. Smith reminds investors of the upcoming December 16, 2024 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Acadia Healthcare Company Inc. (“Acadia” or the “Company”) (NASDAQ: ACHC) securities between February 28, 2020 and September 26, 2024, inclusive (the “Class Period”).
Investors suffering losses on their Acadia investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com.
On September 1, 2024, The New York Times reported that 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.
If you purchased or otherwise acquired Acadia securities during the Class Period, you may move the Court no later than December 16, 2024 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241023128729/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
