Company: Acadia Healthcare Company, Inc.
Class Period: February 23, 2017 — October 24, 2017
Court: U.S.D.C. – Middle District of Tennessee
Deadline: December 3, 2018
Kaskela Law LLC announces that an investor class action lawsuit has been filed against Acadia Healthcare Company, Inc. (NASDAQ: ACHC) (“Acadia” or the “Company”) on behalf of purchasers of the Company’s common stock between February 23, 2017 and October 24, 2017, inclusive (the “Class Period”).
The complaint alleges that defendants made materially false and misleading statements regarding Acadia’s business and operations to investors during the Class Period. Specifically, defendants falsely stated that the quality of Acadia’s U.K. operations gave it a “competitive strength” that would drive future growth and profitability. In addition, defendants caused Acadia to issue false and misleading guidance regarding the Company’s actual and projected fiscal 2017 revenue, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and earnings per share (“EPS”).
The complaint also alleges that defendants failed to disclose to investors that: (i) the quality of Acadia’s U.K. operations did not give the Company a “competitive strength” that would drive future growth and profitability; and (ii) defendants had no reasonable basis to believe and did not in fact believe 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. The complaint further alleges that, as a result of the foregoing, investors purchased Acadia’s common stock at artificially inflated prices during the Class Period and suffered investment losses as a result of defendants’ conduct.
On October 24, 2017, Acadia announced its financial results for the third quarter of 2017. Contrary to defendants’ prior representations, the Company revealed a drastic shortfall in EBITDA for its U.K. operations, purportedly resulting from “lower census and higher operating costs.” In addition, Acadia lowered its financial guidance for 2017, including lowering its EPS guidance by as much as $0.24 per share. Following this news, shares of the Company’s common stock fell $11.44 per share, or 26% in value, to close on October 25, 2017 at $32.68, on heavy trading volume.
IMPORTANT DEADLINE: Investors who purchased Acadia’s common stock during the Class Period may, no later than December 3, 2018, seek to be appointed as a lead plaintiff representative of the class.
Investors who purchased the Company’s common stock during the Class Period and suffered a financial loss are encouraged to contact Kaskela Law LLC at (888) 715 – 1740 for additional information about this action and their legal rights and recovery options and/or complete the information form on this page.