Acadia Healthcare(ACHC) GlobeNewswire News Room·2024-11-02 10:17Lawsuit Overview - Leading securities law firm Bleichmar Fonti & Auld LLP has filed a lawsuit against Acadia Healthcare Company, Inc and certain senior executives [1] - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Acadia Healthcare's securities [2] - Investors have until December 16, 2024 to ask the Court to be appointed to lead the case [2] Allegations Against Acadia Healthcare - Acadia Healthcare is accused of misrepresenting its financial results, which were allegedly driven by insurance fraud and holding vulnerable people against their will in its facilities, even when not medically necessary [3] - The New York Times investigation found that Acadia has lured patients into its facilities and held them against their will, even when detaining them was not medically necessary [4] - The Veterans Affairs Department is investigating whether Acadia is defrauding government health insurance programs by holding patients longer than is medically necessary [6] Impact on Stock Price - Following the New York Times article on September 1, 2024, Acadia's stock price fell 78 21 per share on September 3, 2024 [4] - On September 27, 2024, Acadia disclosed receiving requests for information from the U S Attorney's Office and a grand jury subpoena, causing a 16% decline in stock price from 63 28 per share [5] - The New York Times article on October 18, 2024, about the Veterans Affairs Department investigation caused a 12% decline in Acadia's stock price from 52 03 per share [6] Legal Actions and Investigations - Acadia received a request for information from the U S Attorney's Office for the Southern District of New York and a grand jury subpoena from the U S District Court for the Western District of Missouri [5] - The company expects similar requests from the U S Securities and Exchange Commission related to its patient admissions, length of stay, and billing practices [5] - Several former Acadia employees in Georgia and Missouri have been interviewed by agents from the F B I and the inspector general's office of the Health and Human Services Department [6]