SAN FRANCISCO, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Acadia Healthcare Company (NASDAQ: ACHC) is under fire as it faces a series of securities class-action lawsuits. Investors allege the company misled them about its business practices, with the most recent lawsuit, filed on October 29, 2024, expanding the class period to end on October 18, 2024. This extension followed a report from The New York Times, which revealed that the Veterans Affairs Department had launched an investigation into Acadia, causing the company's stock price to plummet on October 18, 2024. The price of Acadia shares fell sharply again on October 31, 2024 after the company revealed it received a subpoena from the SEC.
Hagens Berman urges Acadia Healthcare Company, Inc. (NASDAQ: ACHC) investors who suffered substantial losses to submit your losses now.
Expanded Class Period: Feb. 28, 2020 – Oct. 18, 2024
Lead Plaintiff Deadline: Dec. 16, 2024
Visit: www.hbsslaw.com/investor-fraud/ACHC
Contact the Firm Now: ACHC@hbsslaw.com | 844-916-0895
Acadia Healthcare Company, Inc. (ACHC) Securities Class Actions:
The lawsuits claim that Acadia made false or misleading statements about its operations, including:
- Relying on holding patients against their will, even when it wasn't medically necessary.
- Subjecting patients at its facilities to abuse.
- Deceiving insurance providers by billing for unnecessary patient stays.
These allegations stem from a September 1, 2024, New York Times article titled "How a Leading Chain of Psychiatric Hospitals Traps Patients," which exposed Acadia’s practices of holding patients without medical justification. Following the article's publication, Acadia's stock price dropped by over 4%.
The lawsuits further claim that on September 27, 2024, Acadia disclosed receiving a subpoena from the U.S. District Court for the Western District of Missouri and a request for information from the U.S. Attorney’s Office for the Southern District of New York. Both inquiries reportedly relate to Acadia's admissions practices, patient lengths of stay, and billing practices. This disclosure led to a more than 16% drop in Acadia's share price.
Then on October 18, 2024, The New York Times reported that the Veterans Affairs Department was investigating Acadia for potentially defrauding government health insurance programs by holding patients longer than medically necessary. This revelation drove Acadia's share price down by over 12% that day.
Most recently, on October 30, 2024, Acadia revealed it had received a subpoena from the Securities and Exchange Commission requesting similar information to that sought by the Department of Justice. Additionally, certain members of the United States Congress have requested related information. This disclosure drove Acadia’s share price down about 18% the next day.
Shareholder rights firm Hagens Berman is investigating the alleged claims. “Acadia Healthcare’s alleged actions, if proven to be true, not only harm vulnerable patients but also jeopardize the interests of its investors,” said Reed Kathrein, a partner at Hagens Berman.
If you invested in Acadia Healthcare and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now.
If you’d like more information and answers to frequently asked questions about the Acadia Healthcare case and our investigation, read more.
Whistleblowers: Persons with non-public information regarding Acadia Healthcare should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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 844-916-0895 or email ACHC@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
