NEW YORK, Aug. 11, 2015 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at AAC Holdings, Inc. ("AAC" or the "Company") (NYSE: AAC).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose (1) that the Company's subsidiaries had been under investigation by the California Department of Justice on murder charges relating to the death of an AAC patient in 2010; and (2) any information regarding patient deaths at AAC facilities prior to March 2015.
On July 29, 2015, an indictment returned by a grand jury related to an investigation by the California Department of Justice into to the death of a patient in 2010 at AAC's subsidiary, American Addiction Centers, charged the subsidiary and a certain number of employees with murder. On August 4, a Seeking Alpha article alleged that AAC had reason to know in 2013 about the criminal investigation that led to the recent murder indictment, but AAC did not disclose the criminal investigation to investors in its SEC filings.
After this news, ACC's share price plummeted in the next several days. On August 4, 2015, ACC's common stock closed at $19.89 per share after having closed at $39.07 per share on July 29, 2015, a $19.18 or a 49.1% drop.
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If you invested in AAC stock or options and would like to discuss your legal rights, visit www.faruqilaw.com/AAC. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding AAC's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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