Acadia Healthcare (ACHC) Shares Tumble After Disclosing DOJ Probe, Grand Jury Subpoena, Expectations of SEC Investigation - Hagens Berman

/EIN News/ -- SAN FRANCISCO, Sept. 27, 2024 (GLOBE NEWSWIRE) -- Acadia Healthcare Company, Inc. (NASDAQ: ACHC) is grappling with escalating scrutiny as a recent SEC filing revealed existing and expected federal investigations. Hagens Berman urges Acadia Healthcare investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist the investigation to contact its attorneys.

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Investigation into Acadia Healthcare Company, Inc. (ACHC):

On September 27, 2024, shares of Acadia Healthcare tumbled $12.38 (-16.3%) after the company described “other events” in its Form 8-K filed that day.
Specifically, the company said that: (1) “[o]n September 24, 2024 [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[;]” (2) “Lakeland Hospital Acquisition, LLC, a subsidiary of Acadia, also received a grand jury subpoena from W.D. Mo. on the same day regarding similar subject matter[;]” and (3) “Acadia anticipates receiving similar document requests from the U.S. Securities and Exchange Commission and may receive additional document requests from other governmental agencies.”

This latest development follows a scathing September 1, 2024 New York Times report titled “How a Leading Chain of Psychiatric Hospitals Traps Patients.” The NYT reported in part that “Acadia has lured patients into facilities and held them against their will, even when detaining them was not medically necessary.” It further reported that “[i]n at least 12 of the 19 states where Acadia operates psychiatric hospitals, dozens of patients, employees and police officers have alerted the authorities that the company was detaining people in ways that violated the law, according to records reviewed by The Times.”

In addition, the NYT reported “at Acadia, patients were often held for financial reasons rather than medical ones, according to more than 50 current and former executives and staff members.”

These allegations have prompted prominent shareholder rights firm Hagens Berman to launch an investigation into potential securities fraud.

“We are investigating whether Acadia may have misled investors about reasons for its revenue growth and about the propriety of its revenue recognition practices,” said Reed Kathrein, a partner at Hagens Berman.

If you invested in Acadia Healthcare and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Acadia Healthcare investigation, read more »

Whistleblowers: Persons with non-public information regarding Acadia Healthcare should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ACHC@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895