newsfilter
← Latest News
Business Wire·

Acadia Healthcare (NASDAQ: ACHC) Investors: Court Denies Motion to Dismiss Paving Way for Litigation to Proceed; Contact Robbins LLP for Information About Your Rights

ACHC
  • The U.S. Court denied Acadia Healthcare Company's (NASDAQ: ACHC) motion to dismiss the amended securities complaint, allowing the class action to proceed past the early dismissal stage.
  • The ruling does not determine the truth of the allegations or establish liability, but confirms that investors who purchased securities during the applicable class period & suffered losses retain potential rights.
  • The lawsuit alleges Acadia Healthcare misled investors regarding patient admission & detention practices, patient abuse, & billing practices involving non-medically necessary stays.
  • Allegations claim the company's business model involved holding vulnerable patients against their will in facilities where detention was not medically necessary.
  • The complaint asserts Acadia deceived insurance providers into paying for unnecessary patient stays & failed to disclose these practices & related risks in public statements.
  • Public disclosure of these allegations began with a September 1, 2024, New York Times investigative article titled "How a Leading Chain of Psychiatric Hospitals Traps Patients."
  • Following the September 1 article, Acadia's stock price fell $3.72 (4.5%) to close at $78.21 on September 3, 2024.
  • On September 27, 2024, Acadia disclosed a voluntary information request 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.
  • Following the September 27 disclosure, Acadia's stock price fell $12.38 (6.36%) to close at $63.28 on that same date.
  • Robbins LLP represents investors on a contingency fee basis, meaning shareholders pay no upfront legal fees or litigation expenses.
  • If the case settles, the company will incur expenses including payouts to shareholders & fees paid by the defendants.
  • Investors seeking information may contact Robbins LLP via email, phone at (800) 350-6003, or through their website.