Acadia Healthcare Company, Inc. (ACHC) Investigation

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.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the ACHC investigation about?

We are investigating whether Acadia may have misled investors about reasons for its revenue growth and about the propriety of its revenue recognition practices.

WHAT SHOULD I DO?

I worked at ACHC. What should I do?

If you were an employee of ACHC, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in ACHC, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any ACHC investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.