| COMPANY |
Acadia Healthcare Company, Inc. |
| COURT |
United States District Court for the Middle District of Tennessee |
| CASE NUMBER |
24-cv-01238 |
| JUDGE |
The Hon. William L. Campbell, Jr. |
| CLASS PERIOD |
February 28, 2020 through October 30, 2024 |
| SECURITY TYPE |
Securities |
Case Background:
The Class Period begins on February 28, 2020 when Acadia Healthcare filed with the SEC its Annual Report on Form 10-K for the year ended December 31, 2019. According to the complaints, this filing and other filings made by Defendants throughout the Class Period were materially false and misleading because the company routinely held patients against their will at times when it was not medical necessary, lied to insurers about the medical necessity of keeping those patients in the company’s facilities against their will, and willfully neglected patients. The foregoing resulted in a heightened risk of regulatory investigations and negative publicity against the company.
The complaints allege that, throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Acadia Healthcare’s business model centered on holding vulnerable people against their will in its facilities, including in cases where it was not medically necessary to do so; (2) while in Acadia Healthcare facilities, many patients were subjected to abuse; (3) Acadia Healthcare deceived insurance providers into paying for patients to stay in its facilities when it was not medically necessary; and (4) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On December 16, 2024, Movants filed Motions to Appoint Counsel and for Appointment as Lead Plaintiff. The Motions are currently pending before the Court and awaiting a decision. This action is ongoing.
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