Acadia Healthcare (ACHC) Class Period Expanded After NYT Report That Veterans Affairs Department Is Investigating Allegations of Holding Patients Longer Than Is Medically Necessary – Hagens Berman

/EIN News/ -- SAN FRANCISCO, Nov. 28, 2024 (GLOBE NEWSWIRE) -- Acadia Healthcare Company (NASDAQ: ACHC) is facing securities class-action lawsuits by investors alleging the company misled them about its business practices. The more recent lawsuit filed on October 29, 2024 expanded the Class Period to end on Oct. 18, 2024 after The New York Times reported that the Veterans Affairs Department has opened an investigation into Acadia, news which sent the price of Acadia shares sharply lower on Oct. 18, 2024.

Hagens Berman urges Acadia Healthcare Company, Inc. (NASDAQ: ACHC) investors who suffered substantial losses to submit your losses now.
Expanded Class Period: Feb. 28, 2020 – Oct. 18, 2024
Lead Plaintiff Deadline: Dec. 16, 2024
Visit: www.hbsslaw.com/investor-fraud/ACHC
Contact the Firm Now: ACHC@hbsslaw.com
                                            844-916-0895

Acadia Healthcare Company, Inc. (ACHC) Securities Class Actions:

The lawsuits claim that throughout the Class Period Acadia made false or misleading statements about its operations. Specifically, the suits allege that:

• Acadia's business model relied on holding patients against their will, even in situations where it wasn't medically necessary.
• Patients at Acadia facilities were subjected to abuse.
• Acadia deceived insurance providers by billing them for unnecessary patient stays.

These allegations stem from a September 1, 2024 New York Times article titled “How a Leading Chain of Psychiatric Hospitals Traps Patients.” The article, according to the lawsuit, exposed Acadia’s “disturbing practice” of holding patients even when such action wasn't medically justified. Following the article's publication, Acadia's stock price reportedly dropped over 4%.

The lawsuits further claim that on September 27, 2024, Acadia disclosed receiving a subpoena from the U.S. District Court for the Western District of Missouri and a request for information from the U.S. Attorney’s Office for the Southern District of New York. Both inquiries reportedly related to Acadia's admissions practices, patient lengths of stay, and billing practices. Additionally, the company stated it anticipated similar requests from the Securities and Exchange Commission and potentially other government agencies. This disclosure, according to the lawsuit, caused the price of Acadia shares to plummet by more than 16%.

The most recently filed lawsuit further claims that investors learned more about the truth on Oct. 18, 2024, when The New York Times reported that the Veterans Affairs Department is investigating whether Acadia is defrauding government health insurance programs by holding patients longer than is medically necessary. This news drove the price of Acadia shares down over 12% that day and prompted the Class Period’s extension to Oct. 18, 2024.

Shareholder rights firm Hagens Berman is investigating the alleged claims. “Acadia Healthcare’s alleged actions, if proven to be true, not only harm vulnerable patients but also jeopardize the interests of its investors,” 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 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 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