SAN DIEGO, Feb. 05, 2025 (GLOBE NEWSWIRE) -- DiCello Levitt LLP announces that it is investigating whether certain directors of Acadia Healthcare Company, Inc. (“Acadia” or the “Company”) (NASDAQ: ACHC) (“Defendants”) breached their fiduciary duties owed to shareholders, including during the period February 28, 2020 through the present.
Current holders of Acadia common stock who wish to learn about the allegations, participate in a shareholder lawsuit, or assist the Firm’s investigation are encouraged to contact DiCello Levitt attorneys Brian O’Mara or Hani Farah by calling (888) 287-9005 or emailing investors@dicellolevitt.com.
Investigation Details:
Acadia provides behavioral healthcare services across the United States, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers, and outpatient clinics.
The firm’s investigation relates to Acadia’s alleged improper business practices at the Company’s treatment facilities and related misrepresentations to investors concerning such practices. Specifically, certain members of Acadia’s Board of Directors breached their fiduciary duties and caused the Company to fail to disclose that: (i) the Company’s business model centered on holding vulnerable people against their will in its facilities, including when it was not medically necessary to do so; (ii) patients were abused while in Acadia’s facilities; and (iii) Acadia defrauded insurance providers into paying for patients to remain in its facilities when not medically necessary.
Acadia shareholders began to learn the truth when, on September 1, 2024, The New York Times published an article detailing how, among other things, Acadia “has lured patients into facilities and held them against their will”; “[o]nce Acadia won more insurance days for patients, it often would not release them before their insurance ran out”; and “police officers witnessed three [Acadia psychiatric hospital] employees assaulting a patient.” On this news, the value of Acadia stock fell $3.72 per share over the next two trading days.
Then, on September 27, 2024, Acadia revealed that it “received a voluntary request for information from the United States Attorney’s Office for 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 [] related to its admissions, length of stay and billing practices” and that it “anticipate[d] receiving similar document requests from the U.S. Securities and Exchange Commission.” On this news, Acadia’s stock fell plummeted more than 16%, losing $12.38 per share.
Thereafter, on October 18, 2024, The New York Times reported 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.” On this news, the price of Acadia stock declined a further 12.2%, falling $7.29 per share.
Finally, on October 30, 2024, Acadia revealed that it slashed full-year 2024 guidance for revenue and EBITDA. The next day, Acadia’s Chief Financial Officer disclosed that the lowered full-year 2024 guidance was in part due to slower same-store patient day growth in the month of October, “which we believe is a result of the recent headlines and reporting in the media.” On this news, the price of Acadia stock fell more than 18%, or $9.39 per share.
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