Investigations
Acadia Healthcare Company, Inc.
Overview
Overview
- Deadline:
- Dec 16, 2024
| Company Name: | Company Name: Acadia Healthcare Company, Inc. |
| Stock Symbol: | Stock Symbol: ACHC |
Acadia Healthcare Company, Inc. (NASDAQ: ACHC): BFA filed a class action lawsuit for violations of the federal securities laws against Acadia Healthcare Company, Inc. (“Acadia” or the “Company”) and certain of the Company’s senior executives. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Acadia securities. The case is pending in the U.S. District Court for the Middle District of Tennessee and is captioned Dyar v. Acadia Healthcare Company, Inc., et al., No. 3:24-cv-01300.
If you incurred losses on your investments in Acadia, you are encouraged to submit your information.
Why was Acadia Sued for Securities Fraud?
Acadia is one of the largest for-profit chains of psychiatric hospitals in the United States. The complaint alleges that, during the relevant period, the Company misrepresented that its financial results were driven by insurance fraud and holding vulnerable people against their will in its facilities, including in cases where it was not medically necessary to do so.
The Stock Declines as the Truth is Revealed
On September 1, 2024, the New York Times published an article titled “How a Leading Chain of Psychiatric Hospitals Traps Patients.” The article explained how “[s]ince the pandemic exacerbated a national mental health crisis, [Acadia’s] revenue has soared.” However, the New York Times’s “investigation found that some of that success was built on a disturbing practice: 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.
On September 27, 2024, Acadia disclosed that it received a request for information from the U.S. Attorney’s Office for the Southern District of New York, a grand jury subpoena from the U.S. District Court for the Western District of Missouri, and that it expects similar requests from the U.S. Securities and Exchange Commission related to the Company’s patient admissions, as well as its length of stay and billing practices. Acadia’s disclosure came one day after the U.S. Justice Department announced that Acadia had agreed to pay $19.85 million to settle allegations that between 2014 and 2017, the company knowingly submitted false claims for payment to Medicare and Medicaid for inpatient behavioral services that were not medically necessary, admitted patients ineligible for treatment, and failed to properly discharge patients when they no longer needed treatment. This news caused a significant 16% decline in the price of Acadia stock, from $75.66 per share on September 26, 2024 to $63.28 per share on September 27, 2024.
Then, on October 18, 2024, the New York Times published an article titled “Veterans Dept. Investigating Acadia Healthcare for Insurance Fraud,” stating that the Veterans Affairs Department is investigating whether Acadia “is defrauding government health insurance programs by holding patients longer than is medically necessary[.]” The article also stated that “[s]everal former Acadia employees in Georgia and Missouri have also recently been interviewed by agents from the F.B.I. and the inspector general’s office of the Health and Human Services Department.” This news caused a significant 12% decline in the price of Acadia stock, from $59.32 per share on October 17, 2024 to $52.03 per share on October 18, 2024.
What are my Rights?
If you purchased or otherwise acquired Acadia securities, you may ask the Court no later than December 16, 2024, which is the first business day after 60 days from the date of the publication of notice of pendency of the first-filed action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Acadia, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
If you incurred losses on your investments in Acadia, you are encouraged to submit your information.
Why was Acadia Sued for Securities Fraud?
Acadia is one of the largest for-profit chains of psychiatric hospitals in the United States. The complaint alleges that, during the relevant period, the Company misrepresented that its financial results were driven by insurance fraud and holding vulnerable people against their will in its facilities, including in cases where it was not medically necessary to do so.
The Stock Declines as the Truth is Revealed
On September 1, 2024, the New York Times published an article titled “How a Leading Chain of Psychiatric Hospitals Traps Patients.” The article explained how “[s]ince the pandemic exacerbated a national mental health crisis, [Acadia’s] revenue has soared.” However, the New York Times’s “investigation found that some of that success was built on a disturbing practice: 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.
On September 27, 2024, Acadia disclosed that it received a request for information from the U.S. Attorney’s Office for the Southern District of New York, a grand jury subpoena from the U.S. District Court for the Western District of Missouri, and that it expects similar requests from the U.S. Securities and Exchange Commission related to the Company’s patient admissions, as well as its length of stay and billing practices. Acadia’s disclosure came one day after the U.S. Justice Department announced that Acadia had agreed to pay $19.85 million to settle allegations that between 2014 and 2017, the company knowingly submitted false claims for payment to Medicare and Medicaid for inpatient behavioral services that were not medically necessary, admitted patients ineligible for treatment, and failed to properly discharge patients when they no longer needed treatment. This news caused a significant 16% decline in the price of Acadia stock, from $75.66 per share on September 26, 2024 to $63.28 per share on September 27, 2024.
Then, on October 18, 2024, the New York Times published an article titled “Veterans Dept. Investigating Acadia Healthcare for Insurance Fraud,” stating that the Veterans Affairs Department is investigating whether Acadia “is defrauding government health insurance programs by holding patients longer than is medically necessary[.]” The article also stated that “[s]everal former Acadia employees in Georgia and Missouri have also recently been interviewed by agents from the F.B.I. and the inspector general’s office of the Health and Human Services Department.” This news caused a significant 12% decline in the price of Acadia stock, from $59.32 per share on October 17, 2024 to $52.03 per share on October 18, 2024.
What are my Rights?
If you purchased or otherwise acquired Acadia securities, you may ask the Court no later than December 16, 2024, which is the first business day after 60 days from the date of the publication of notice of pendency of the first-filed action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Acadia, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.