Farooqui & Farooqui, Securities Litigation Partners LLP James (Josh) Wilson It encourages investors who have suffered losses exceeding $100,000 Acadia Healthcare (NASDAQ:) to contact him directly to discuss their options
If you suffer losses exceeding $100,000 Acadia Healthcare Between February 28, 2020 and September 26, 2024 If you would like to discuss your legal rights, contact Farooqui & Farooqui Partner Josh Wilson live in 877-247-4292 or 212-983-9330 (ext. 1310).
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New York, New York–(Newsfile Corp. – December 15, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Acadia Healthcare Company, Inc. (“Acadia Healthcare” or the “Company”) (NASDAQ: ACHC) and reminds investors of December 16, 2024 deadline For the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.
Farooqui & Farooqui is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated the federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Acadia Healthcare's business model is focused on detaining vulnerable people against their will in Its trading system. Facilities, including where it is not medically necessary; (2) While at Acadia Healthcare facilities, numerous patients were abused; (3) Acadia Healthcare deceived insurance providers into paying for patients to stay at its facilities when it was not medically necessary; and (4) as a result, Defendants' statements about their business, operations, and future prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims, investors suffered damages.
On Sunday, September 1, 2024 AD New York Times (NYSE:) published an article titled “How a Leading Chain of Psychiatric Hospitals Detains Patients.” This article stated, “Acadia Healthcare is one of America's largest psychiatric hospital chains. Since the pandemic has worsened the national mental health crisis, the company's revenues have soared. (…) But a New York Times investigation found that some of that success It was built on a troubling practice: Acadia lured patients to its facilities and held them against their will, even when their detention was not medically necessary in at least 12 of the 19 cases in states where Acadia operated psychiatric hospitals, dozens reported. Patients, employees and police officers told authorities that the company was detaining people in ways that violated the law, according to records reviewed by The Times, and in some cases, judges had intervened to force Acadia to release patients.
Based on this news, Acadia Healthcare's stock price fell 4.5% on September 3, 2024.
On September 27, 2024, Acadia Healthcare filed a current report with the U.S. Securities and Exchange Commission (“SEC”), revealing that “on September 24, 2024, (Acadia) received a voluntary request for information from the United States Attorney.” Office of 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 (…) regarding its admission, length of stay and billing practices.” The current report also stated that “Acadia expects to receive similar document requests from the Securities and Exchange Commission and may receive additional document requests from other government agencies.”
Based on this news, Acadia Healthcare's stock price fell by 16.36% on September 27, 2024.
A court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class and is appropriate and typical for members of the class who direct and oversee litigation on behalf of the putative class. Any member of the putative class may ask the court to serve as lead plaintiff through counsel of their choice, or they may choose to do nothing and remain an absent member of the class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Acadia Healthcare's conduct to contact the company, including whistleblowers, former employees, shareholders and others.
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Lawyer advertisement. The law firm responsible for this announcement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar result with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/233740
