According to the Complaint, AAC Holdings, Inc. provides inpatient and outpatient substance use treatment services for individuals with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues in the United States.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) AAC’s internal control over financial reporting and disclosure controls and procedures was inadequate to accurately reflect adjustments related to estimates for accounts receivable, provision for doubtful accounts, and revenue; (ii) AAC consequently misstated financial and operating results in its annual reports for fiscal years 2016 and 2017, as well as all quarterly reports throughout 2017 and 2018; (iii) accordingly, those reports could not be relied upon, requiring AAC to restate the financial and operating results reflected therein; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On August 13, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on November 4. On February 12, 2020, Defendants filed a Motion to Dismiss the consolidated Complaint. The Court issued an Order denying Defendants' Motion to Dismiss on April 8, 2021. On April 29, the Court issued an Order granting Lead Plaintiff's Motion to Dismiss the Company issuer.

Lead Plaintiff filed a Motion for Class Certification on July 6, 2021. On February 24, 2023, the Court issued an Order granting in part and denying in part the Motion for Class Certification.

On April 5, 2023, the parties notified the Court that they had reached a Settlement in principle. On May 17, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on July 6. On October 18, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.