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Case Status:    DISMISSED    
On or around 03/26/2018 (Court's order of dismissal)

Filing Date: March 14, 2018

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.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ACHC
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: M.D. Tennessee
DOCKET #: 18-CV-00286
JUDGE: Hon. Aleta A. Trauger
DATE FILED: 03/14/2018
CLASS PERIOD START: 02/23/2017
CLASS PERIOD END: 10/24/2017
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrett Johnston Martin & Garrison, LLC
    414 Union Street, Suite 900, Barrett Johnston Martin & Garrison, LLC, TN 37219
    615-244-2202 615-252-3798 ·
  2. Robbins Geller Rudman & Dowd LLP (Nashville)
    414 Union Street, Suite 900, Robbins Geller Rudman & Dowd LLP (Nashville), TN 37219
    615-244-2203 615-252-3798 ·
  3. VanOverbeke Michaud & Timmony, P.C.
    79 Alfred Street, VanOverbeke Michaud & Timmony, P.C., MI 48201
    313.578.1200 313.578.1200 ·
No Document Title Filing Date