Tuesday, 29 October 2024 07:35 PM
Class Action
SAN FRANCISCO, CA / ACCESSWIRE / October 29, 2024 / Acadia Healthcare Company, Inc. (NASDAQ:ACHC) received a recent downgrade from JP Morgan. In an October 15 note to clients, analyst Rishi S. Parekh cited concerns over recent negative headlines and potential legal risks.
"Despite strong fundamentals and a favorable regulatory environment, we believe the stock's upside is limited," Parekh wrote. "Given the company's history of litigation and recent negative press, we cannot ignore the associated risks."
JP Morgan's risk warnings to investors were prescient. Just days later, on October 18, The New York Times reported that the Veterans Affairs Department is investigating Acadia for potential fraud. The agency's inspector general is examining whether the company kept patients longer than necessary and billed government health insurance programs fraudulently.
This latest probe adds to a growing list of government investigations into Acadia's practices. The company has previously disclosed that it is under scrutiny by multiple federal agencies, including the Securities and Exchange Commission.
Hagens Berman urges Acadia Healthcare investors who suffered substantial losses to submit your losses now.
Class Period: Feb. 28, 2020 - Sept. 26, 2024
Lead Plaintiff Deadline: Dec. 16, 2024
Visit:www.hbsslaw.com/investor-fraud/ACHC
Contact the Firm Now:[email protected]
844-916-0895
Acadia Healthcare Company, Inc. (ACHC) Securities Class Action:
In addition to the government investigations, Acadia is also facing a class-action lawsuit from investors.
The suit, filed in the Middle District of Tennessee, seeks to recover damages for investors who purchased Acadia Healthcare securities between February 28, 2020, and September 26, 2024.
According to the complaint, Acadia Healthcare has engaged in a pattern of detaining patients against their will, even when such detention was not medically necessary. The company is accused of using deceptive tactics to lure patients into its facilities and then holding them captive for financial gain, rather than for their medical treatment.
The lawsuit alleges that Acadia Healthcare's executives were aware of these practices and intentionally misled investors about the company's business model and financial prospects.
The complaint cites a previous report by The New York Times that revealed widespread allegations of patient abuse and illegal detention at Acadia Healthcare facilities across the country.
Following the publication of The New York Times investigation on September 1, 2024, the company's stock price plummeted by 4.5%. The decline accelerated on September 27, 2024, when Acadia Healthcare disclosed that it was under investigation by federal authorities. The stock price dropped by a further 16.36% on that day, reflecting investor concerns about the potential legal and financial consequences of the company's misconduct.
Shareholder rights firm Hagens Berman is investigating the alleged claims. "Acadia Healthcare's alleged actions suggest a shocking disregard for patient rights and the law," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.
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 case and our 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 [email protected].
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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
SOURCE: Hagens Berman Sobol Shapiro LLP
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