Court Enters Order to Provide Notice of Distribution of Judgment in Favor of Certified Class in In re: PHC, Inc. Shareholder Litigation

NEW YORK, Feb. 7, 2019 /PRNewswire/ -- Wolf Popper LLP - To:  All former Class A shareholders of PHC, Inc. ("PHC") who either abstained from voting, did not vote, or voted against the merger between PHC and Acadia Healthcare Company, Inc. ("Acadia") (the "Merger") in connection with the October 26, 2011 PHC shareholder vote who held their Class A shares immediately prior to October 26, 2011, and whose PHC Class A shares were converted into Acadia shares after the effective Merger date and who are not Defendants, or affiliated with any of them, in the litigation referred to below (the "Class").

In or about January of 2017, a Notice of Pendency of Class Action was circulated to Class members.  The Notice advised that the United States District Court, District of Massachusetts had certified the action In re: PHC, Inc. Shareholder Litigation, C.A. No. 11-11049-PBS, which alleges breaches of fiduciary duty in connection with the Merger, as a class action. 

On July 27, 2017, following trial, the Court entered judgment in favor of the Class and against Defendant Bruce Shear in the amount of $3,021,949.  Following the conclusion of appeals, on January 15, 2019, Shear caused the transfer of $3,076,190.09 ($3,021,949 plus post-judgment interest due, the "Judgment Amount") into an escrow account that will invest in interest-bearing U.S. treasury securities.

In order to receive a check, claimants must fill out and return a Proof of Claim Form ("Claim Form') by June 6, 2019, where, among other things, claimants will verify their names and addresses and that they are members of the Class.  A Claim Form may be obtained on the claims administration website for this action, which is www.PHCShareholderLitigation.com.  Shareholders who voted their shares in favor of the Merger are NOT members of the Class and will not receive checks. 

The attorneys representing the Class ("Class Counsel") spent thousands of hours over more than seven years achieving and defending the Judgment, and they also spent hundreds of thousands of dollars in out-of-pocket costs.  For their efforts, Class Counsel intend to request that the Court award them one-third of the Judgment Fund (the "Judgment Fund" constituting the "Judgment Amount," plus any accrued interest on the escrowed Judgment proceeds), and also reimbursement of their litigation expenses.  The representative plaintiff will also request a service award of $25,000 for its significant time and effort invested in the case.

The hearing on these requests is currently scheduled for 2:30 p.m. on April 2, 2019 in Courtroom 19 of the United States Court for the District of Massachusetts, 1 Courthouse Way, Boston, Massachusetts, 02210.  Class members do not need to attend the hearing.  If Class members wish to object to the requests, they must file with the Court a written objection with any necessary supporting papers.  Any objection must comply with the requirements described in the answer to Question 13 in the full-length notice to Class members (the "Notice"), which is available at www.PHCShareholderLitigation.com.

This release is a summary only. Please visit www.PHCShareholderLitigation.com for additional information and court documents concerning this action, the Notice, as well as updates concerning the hearing.  

SOURCE Wolf Popper LLP

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