New York – A prominent securities law firm, Bleichmar Fonti & Auld LLP, has initiated a lawsuit against Acadia Healthcare Company, Inc. and certain top executives, alleging misconduct that includes insurance fraud and unethical patient retention practices. This legal action puts one of the largest for-profit psychiatric hospital chains in the U.S. under scrutiny for its operations and financial declarations.
Investors in Acadia Healthcare are encouraged to join the lawsuit if they seek to recover losses from investments made during the implicated period. The legal claim, filed in the U.S. District Court for the Middle District of Tennessee, cites violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Investors have a deadline until December 16, 2024, to petition the court for lead plaintiff status in the case named Kachrodia v. Acadia Healthcare Company, Inc., et al., No. 24-cv-01238.
The lawsuit centers on allegations first surfaced by a New York Times investigation published on September 1, 2024. The investigation accused Acadia Healthcare of engaging in practices designed to unjustifiably extend patient stays for financial gain. Following this report, Acadia’s stock experienced a notable decline, dropping 4.5% to close at $78.21 per share on September 3, 2024.
Further complicating matters for Acadia, on September 27, 2024, the company acknowledged receiving a request for information from the U.S. Attorney’s Office for the Southern District of New York and a grand jury subpoena regarding its patient admission practices. This acknowledgment led to a sharp 16% drop in Acadia stock prices.
Potential claimants in this legal action should be aware that representation by Bleichmar Fonti & Auld LLP will be on a contingency basis, meaning shareholders would not bear upfront legal costs. The firm will also request court approval to cover litigation expenses and attorney fees.
Bleichmar Fonti & Auld LLP is recognized internationally for its proficiency in handling securities class actions and shareholder litigation. The firm’s notable achievements include substantial monetary recoveries from major corporations on behalf of plaintiffs in various securities disputes.
For more information or potential participation in the lawsuit, parties may contact Ross Shikowitz at [email protected] or by calling 212-789-3619.
The litigation against Acadia Healthcare underscores the critical importance of transparent and ethical management practices in healthcare facilities, particularly those providing psychiatric care. It also highlights the role of legal oversight in maintaining corporate accountability in the healthcare sector.
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