NEW YORK, NY - 
(NewMediaWire) - October 18, 2024 - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Acadia Healthcare Company, Inc. (“Acadia” or the “Company”) (NASDAQ: ACHC) securities between February 28, 2020 and September 26, 2024 (the “Class Period”).
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than December 16, 2024 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process.
On Sunday, September 1, 2024, The New York Times published an article entitled “How a Leading Chain of Psychiatric Hospitals Traps Patients.” The article reports that “Acadia has 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, the first trading day following the news.
Then, on September 27, 2024, before the market opened the Company announced in a Form 8-K filing with the Securities and Exchange Commission that it “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.” The Company also “anticipates receiving similar document requests from the U.S. Securities and Exchange Commission and may receive additional document requests from other governmental agencies.”
On this news, the price of Acadia stock fell $12.38 per share, over 16%, to close at $63.28 per share on September 27, 2024.
The complaint alleges, among other things, that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that (i) 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; (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.
WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(212) 329-8571
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
