Acadia is a healthcare company that operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities, and facilities providing outpatient behavioral healthcare services to serve the behavioral health and recovery needs of communities throughout the United States, the United Kingdom (“U.K.”) and Puerto Rico.
According to the law firm press release, a class action has been commenced by an institutional investor on behalf of all purchasers of Acadia Healthcare Company, Inc. (“Acadia” or the “Company”) (NASDAQ:ACHC) publicly traded securities during the period between February 23, 2017 and October 24, 2017 (the “Class Period”), including in connection with an August 22, 2017 public offering (the “Offering”).
The complaint charges Acadia, certain of its officers and directors and an underwriter of the Offering with violations of the Securities Exchange Act of 1934 and/or the Securities Act of 1933. The complaint alleges that throughout and before the Class Period, defendants made numerous materially false and misleading statements and omissions to investors regarding Acadia’s business and operations, including by falsely stating that the quality of its U.K. operations gave the Company a “competitive strength,” which would drive future growth and profitability, and by issuing false and misleading guidance regarding the Company’s actual and projected 2017 revenue, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and earnings per share (“EPS”).
On October 24, 2017, Acadia announced its financial results for the third quarter of 2017. The Company revealed a drastic shortfall in EBITDA for its U.K. facilities, purportedly resulting from “lower census and higher operating costs,” and lowered its financial guidance for 2017, including lowering its EPS guidance as much as $0.24 per share. Following these revelations, Acadia’s stock price fell 26%, from a closing price of $44.12 per share on October 24, 2017 to a closing price of $32.68 per share on October 25, 2017.
This case was voluntarily dismissed on March 23, 2018. A related case filed under Docket 18-cv-00988 continues.
On January 9, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on April 1. Defendants filed a Motion to Dismiss the consolidated Complaint on May 31. On January 20, 2021, the Court issued an Order denying Defendants' Motion to Dismiss.