NEW YORK, March 20, 2018 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Acadia Healthcare Company, Inc. ("Acadia Healthcare" or the "Company") (NASDAQ : ACHC).
A class action complaint has been filed in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Acadia Healthcare's publicly traded securities between February 23, 2017 and October 24, 2017, inclusive (the "Class") alleging violations of the Securities Exchange Act of 1934 and the Securities Act of 1933.
According to the complaint, Acadia Healthcare materially misled the investing public, which had the effect of inflating the prices of Acadia Healthcare's securities. Beginning on February 23, 2017, Acadia Healthcare represented in its public filings and press releases that it was "the leading independent provider of mental health services in the U.K." and that "[f]avorable industry and legislative trends" gave the company a "competitive strength," which would drive future growth and profitability.
As alleged in the complaint, on October 24, 2017, Acadia Healthcare announced its financial results for the third quarter 2017, which revealed a drastic shortfall in EBITA for its U.K. facilities, purportedly resulting from "lower census and higher operating costs." Acadia Healthcare also lowered its financial guidance for 2017, including lowering its EPS guidance as much as $0.24 per share.
Following these revelations, which the complaint alleges began to uncover the relevant truth that had previously been concealed from the market, Acadia Healthcare's stock price collapsed, plummeting 26% from a closing price of $44.12 per share on October 24, 2017 to close at $32.68 per share on October 25, 2017.
The complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements and/or failed to disclose that (1) the quality of Acadia Healthcare's U.K. operations did not give the Company a "competitive strength" which would drive future growth and profitability, and (2) defendants lacked a reasonable basis for their positive statements about the Company's business and financial prospects during the Class Period, including their guidance issued and reaffirmed throughout the Class Period.
If you are a member of the proposed Class, you may move the court no later than May 14, 2018 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP