Acadia Healthcare(US:ACHC) Prnewswireยท2024-11-13 22:39Core Viewpoint - Acadia Healthcare Company, Inc. is facing a class action lawsuit alleging violations of the Securities Exchange Act of 1934, with claims related to misleading statements and unethical practices regarding patient admissions and treatment [1][3][4]. Group 1: Lawsuit Details - The class action lawsuit is titled Kachrodia v. Acadia Healthcare Company, Inc., and covers purchasers of Acadia's publicly traded securities from February 28, 2020, to September 26, 2024 [1]. - Allegations include that Acadia's business model involved holding patients against their will and subjecting them to abuse, while also deceiving insurance providers into covering unnecessary stays [3][4]. - Following a New York Times article revealing these practices, Acadia's stock price dropped over 4% [4]. Group 2: Regulatory Scrutiny - On September 27, 2024, Acadia disclosed receiving a voluntary request for information from the U.S. Attorney's Office and a grand jury subpoena related to its admissions and billing practices, leading to a further stock price decline of over 16% [5]. - The lawsuit indicates that Acadia anticipates additional document requests from the U.S. Securities and Exchange Commission and other government agencies [5]. Group 3: Lead Plaintiff Process - The Private Securities Litigation Reform Act of 1995 allows investors who purchased Acadia's securities during the class period to seek appointment as lead plaintiff, representing the interests of the class [6]. - The lead plaintiff can choose a law firm to litigate the case, and participation as lead plaintiff does not affect the ability to share in any potential recovery [6]. Group 4: Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud cases, having recovered $6.6 billion for investors in class action cases, significantly more than any other firm in recent years [7].