NEW YORK, Sept. 28, 2009 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Psychiatric Solutions, Inc. ("Psychiatric Solutions") (Nasdaq:PSYS) stock during the period between February 21, 2008, through February 25, 2009 (the "Class Period") for violations of the federal securities laws.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Psychiatric Solutions common stock during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by November 20, 2009. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
The Complaint alleges that during the Class Period, defendants issued materially false and misleading statements concerning the Company's safeguards and controls over its operations, including at its Riveredge Hospital ("Riveredge") facility. Defendants downplayed incidents at the Company's facilities, indicating that the deficiencies had all been resolved. Defendants assured investors that corrective actions had already been taken at the Company's facilities to improve the quality, safety and risk management. Additionally, defendants issued materially false and misleading statements regarding the Company's financial results and compliance with Generally Accepted Accounting Principles. Specifically, the Company failed to properly account for its contingent liabilities related to the deficiencies surrounding its operations. As a result of defendants' false and misleading statements, Psychiatric Solutions stock traded at artificially inflated prices during the Class Period, reaching a high of $39.71 per share on July 8, 2008.