SAN FRANCISCO, Oct. 08, 2015 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, alerts investors of the October 23, 2015 lead plaintiff deadline in the securities fraud class action lawsuit filed against AAC Holdings, Inc. (NYSE:AAC). If you have losses greater than $50,000 in AAC securities during the Class Period, contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000, emailing AAC@hbsslaw.com or visiting http://hb-securities.com/investigations/AAC.
The case was filed on behalf of shareholders who purchased AAC securities between October 2, 2014 and August 3, 2015 inclusive.
AAC owns and operates substance abuse treatment and rehabilitation facilities throughout the United States. The complaint alleges that, at the time of its October 2, 2014 IPO, AAC was concealing a pattern of patient deaths in its facilities in California and Florida – two markets acknowledged to be essential to the Company’s success.
On July 29, 2015 after the close of trading, AAC reported that a grand jury in California returned an indictment asserting charges against AAC and several current and former employees, including its President at the time, Jerrod Menz. The Company did not reveal that the indictment was for second-degree murder and dependent adult abuse. Then, on August 3, 2015, the Company disclosed that the indictments were for second-degree murder and dependent adult abuse. On this news, AAC's stock price declined $5.22 per share, or 14%.
The revelations were not over. On August 4, 2015, Bleecker Street Research reported that AAC was aware of the investigation that led to the indictment and that the Company knew of at least 8 undisclosed patient deaths in AAC facilities. AAC's common stock price plunged in reaction to this news, falling by $12.90 per share, or 39%. All totaled, since AAC disclosed that charges were being brought against Menz and its California subsidiaries, AAC's common stock price fell by $19.18 per share, or 49%. The revelations wiped out $153 million in market capitalization.
If you were negatively impacted by over $50,000 in your investment in AAC between October 2, 2014 and August 3, 2015 inclusive, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation.
Whistleblowers: Persons with non-public information regarding AAC should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at (510) 725-3000 or email AAC@hbsslaw.com.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm headquartered in Seattle, Washington with offices in nine cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hbsslaw.com. Read the firm’s Securities Newsletter at http://www.hb-securities.com/newsletter. The firm’s blog is located at www.meaningfuldisclosure.com. For the latest news from Hagens Berman, visit http://www.hbsslaw.com/newsroom or follow us on Twitter at @ClassActionLaw.