SAN DIEGO and BRENTWOOD, Tenn., Aug. 19, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of AAC Holdings, Inc. (NYSE: AAC) breached their fiduciary duties to shareholders. AAC Holdings provides inpatient substance abuse treatment services for individuals with drug and alcohol addiction in the United States.
View this press release on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/aac-holdings-inc
AAC Holdings Fails to Disclose Criminal Investigation
On July 29, 2015, AAC Holdings disclosed that the California Department of Justice indicted its president Jerrod Menz, another current employee, three former employees, and two subsidiaries for murder. Menz stepped down from his role as president and board member following the news. The indictment relates to the death of a patient in 2010 at American Addiction Centers, to which AAC Holdings is the parent company. On August 4, 2015, SeekingAlpha published an article asserting that AAC Holdings had reason to know in 2013 about the criminal investigation that led to the recent murder indictment, yet did not disclose the criminal investigation to investors in its U.S. Securities & Exchange Commission filings. On this news, AAC Holdings stock fell $12.90 per share, or over 39%, to close at $19.89 per share on August 4, 2015.
In light of this news, Robbins Arroyo LLP's investigation focuses on whether AAC Holdings and/or its officers and directors misled shareholders by failing to disclose the company's risks and liabilities.
AAC Holdings Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP