Acadia Healthcare Company, Inc. (Nasdaq: ACHC)
A class action has been commenced in the United States District Court for the Middle District of Tennessee on behalf of all persons or entities who purchased or otherwise acquired Acadia Healthcare Company, Inc. (Nasdaq: ACHC) securities between February 23, 2017 to October 24, 2017, (the “Class Period”).
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding Acadia’s business and operations, including by falsely stating that the quality of Acadia’s U.K. operations gave it a “competitive strength” that would drive future growth and profitability, and by issuing false and misleading guidance regarding the Company’s actual and projected 2017 revenue, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and earnings per share (“EPS”). As a result of defendants’ false statements, Acadia stock traded at artificially inflated prices of more than $52 per share during the Class Period. While Acadia stock was trading at these artificially inflated prices, the Company’s CEO and President sold 706,000 shares of their Acadia stock for proceeds of more than $35 million.
Then on October 24, 2017, Acadia announced its financial results for the third quarter of 2017. The Company revealed a drastic shortfall in EBITDA for its U.K. operations, purportedly resulting from “lower census and higher operating costs,” and lowered its financial guidance for 2017, including lowering its EPS guidance as much as $0.24 per share. Following these revelations, the price of Acadia stock price fell 26%, from a close of $44.12 per share on October 24, 2017 to a close of $32.68 per share on October 25, 2017.
If you are a current shareholder and/or purchased stock during the period between February 23, 2017 to October 24, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.