Acadia Healthcare Class Action Lawsuit: 7 Frequently Asked Questions

11/2/2024

INTRODUCTION TO THE ACADIA HEALTHCARE CLASS ACTION LAWSUIT

RED STOCK TICKER USED IN Acadia Healthcare class action lawsuit

Call Timothy L. Miles today for a free case evaluation in the Acadia Healthcare class action lawsuit

The Acadia Healthcare class action lawsuit seeks to represent purchasers or acquirers of Acadia Healthcare Company, Inc. (NASDAQ: ACHC) publicly traded securities between February 28, 2020, and September 26, 2024, inclusive (the “Class Period”). Captioned Kachrodia v. Acadia Healthcare Company, Inc., No. 24-cv-01238 (M.D. Tenn.), the Acadia Healthcare class action lawsuit charges Acadia Healthcare and certain of Acadia Healthcare’s top current and former executives with violations of the Securities Exchange Act of 1934.

If you have suffered losses in Acadia Healthcare stock and are interested in becoming the lead plaintiff in the Acadia Healthcare class action lawsuit or have any inquiries regarding your rights as a shareholder, please reach out to Acadia Healthcare Stock Loss Lawyer Timothy L. Miles at no cost. You can contact him by calling 855/846-6529, sending an e-mail to [email protected], or filling out a contact form. Lead plaintiff motions for the Acadia Healthcare class action lawsuit must be filed with the court no later than December 16, 2024.

Read on for answers to seven frequently asked questions about the Acadia Healthcare class action lawsuit.

what are the allegations in the Acadia Healthcare class action lawsuit

Acadia Healthcare provides behavioral healthcare services. The Acadia Healthcare class action lawsuit can be summarized as follows:
Fase and Misleading Statements

The defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Acadia Healthcare’s business model centered on holding vulnerable people against their will in Acadia Healthcare’s facilities, including in cases where it was not medically necessary to do so; (ii) while in Acadia Healthcare facilities, many patients were subjected to abuse; and (iii) Acadia Healthcare deceived insurance providers into paying for patients to stay in Acadia Healthcare’s facilities when it was not medically necessary.

New York Times Investigation: The Truth Begins to Emerge

On September 1, 2024, The New York Times published an article entitled “How a Leading Chain of Psychiatric Hospitals Traps Patients,” which revealed that The New York Times’s “investigation found that some of that success was built on a disturbing practice: Acadia has lured patients into its facilities and held them against their will, even when detaining them was not medically necessary.” On this news, the price of Acadia Healthcare stock fell more than 4%, according to the complaint.

Federal Investigations: The Truth Emerges

On September 27, 2024, Acadia Healthcare revealed that “[o]n September 24, 2024, Acadia Healthcare . . . received a voluntary request for information from the United States Attorney’s Office for the Southern District of New York as well as a grand jury subpoena from the United States District Court for the Western District of Missouri (W.D.Mo.) related to its admissions, length of stay and billing practices,” further disclosing that “Acadia anticipates receiving similar document requests from the U.S. Securities and Exchange Commission and may receive additional document requests from other government agencies.”

Stock Plummets

On this news, the price of Acadia Healthcare stock fell more than 16%, according to the Acadia Healthcare class action lawsuit.

when is THE LEAD PLAINTIFF DEADLINE?

Lead plaintiff motions for the Acadia Healthcare class action lawsuit must be filed with the court no later than December 16, 2024.
When a securities class action is filed such as the Acadia Healthcare class action lawsuit:

The person who files the first complaint is required to publish a notice announcing the filing.
Anyone who wants to be lead plaintiff on behalf of the class must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published.

what is The Lead Plaintiff Process in the Acadia Healthcare Class Action Lawsuit

The Private Securities Litigation Reform Act of 1995 (PSLRA) permits any investor who purchased and suffered losses in Acadia Healthcare stock to seek appointment as lead plaintiff in the Acadia Healthcare class action lawsuit.

A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit.
The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit.
An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.

A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.

what are The Benefits of Serving as a Lead Plaintiff in the Acadia Healthcare Lawsuit?

Negotiating more competitive attorney fees and reducing litigation costs.
Managing the litigation by overseeing the progress of the case and reviewing important filings.
Participating in mediation and settlement discussions.
Having a voice in decision-making processes regarding the settlement.
No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a settlement or judgment recovery for the class
Potentially enjoying long-term benefits from governance reform resulting from the litigation.

what are The Responsibilities the Lead Plaintiff Will Have in the Acadia Healthcare Lawsuit?

Negotiating more competitive attorney fees and reducing litigation costs.
Managing the litigation by overseeing the progress of the case and reviewing important filings.
Participating in mediation and settlement discussions.
Having a voice in decision-making processes regarding the settlement.
No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a settlement or judgment recovery for the class
Potentially enjoying long-term benefits from governance reform resulting from the litigation.

what are Eligibility Criteria for Lead Plaintiff Appointment in the Acadia Healthcare Lawsuit

To be eligible for appointment as the lead plaintiff in the Acadia Healthcare class action lawsuit, an investor must meet the following criteria:

Securities Acquisition: The investor must have purchased Acadia Healthcare Company, Inc. (NASDAQ: ACHC) publicly traded securities between February 28, 2020, and September 26, 2024, inclusive.
Financial Losses: The investor must have suffered financial losses as a direct result of the alleged securities fraud perpetrated by Acadia Healthcare and its executives.
Typicality and Adequacy: The investor's legal claims must be typical of those asserted on behalf of the class, and they must demonstrate their ability to adequately represent the interests of the entire class through experience, resources, and the absence of conflicts of interest.

It is crucial to note that both domestic and international investors who meet these criteria are eligible to seek appointment as the lead plaintiff in the Acadia Healthcare class action lawsuit, as courts have consistently recognized the rights of non-U.S. investors in securities class actions.

what are the Legal Requirements for Prevailing in the Acadia Healthcare Class Action Lawsuit?

Material Misrepresentation or Omission
Scienter
Connection to Securities Transaction
Reliance
Economic Loss
Loss Causation

CONTACT Acadia Healthcare STOCK LOSS LAWYER TODAY TIMOTHY L. MILES TODAY ABOUT An Acadia Healthcare CLASS ACTION LAWSUIT

If you suffered losses in Acadia Healthcare stock, contact Acadia Healthcare stock loss lawyer Timothy L. Miles today for a free case evaluation about an Acadia Healthcare class action lawsuit. The call is free and so is the fee unless we will or settle you case so give us a call today. (855) 846–6529 or [email protected].

The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
300 Centerview Dr., #247
Brentwood, TN 37027
Phone: (855) 846–6529
Email: [email protected]

Acadia Healthcare stock loss lawyer Timothy L. Miles

Timothy L. Miles is a top-rated and AV preeminent lawyer in Nashville, Tennessee and a nationally known class action and products liability lawyer who has been leading the fight to protect consumer rights for over 22 years. Mr. Miles received a Bachelor of Science in Psychology from Belmont University in Nashville, Tennessee in 1995 and his J.D. from the Nashville School of Law in May 2001, graduating third in his class, and was made a member of the Honorable Society of Cooper’s Inn which is reserved for students graduating in the top ten percent of their class.

He is admitted to practice before the Tennessee Supreme Court; the United States District Court for the Western, Middle and Eastern Districts of Tennessee and the District of Colorado; and the Sixth Circuit Court of Appeals. He is a member of the Nashville Bar Association; National Trial Lawyers Association; and Harry Phillips American Inns of Court (Student Member 2000). Mr. Miles has dedicated his career to representing consumers and shareholders in complex class-action litigation, products liability and mass torts.

Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover millions of dollars for aggrieved consumers, shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards.

For example, Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association, which is by invitation only and is “extended to those attorneys who exemplify superior qualifications, trial results, and leadership in their respective state based upon objective and uniformly applied criteria.” The National Trial Lawyers Association explained the significance of this honor: “With the selection of Timothy L. Miles by The National Trial Lawyers: Top 100, [Mr.] Miles has shown that he exemplifies superior qualifications, leadership skills, and trial results as a trial lawyer. The selection process for this elite honor is based on a multi-phase process which includes peer nominations combined with third party research.” Further, “[m]embership is extended only to the select few of the most qualified attorneys from each state or region who demonstrate superior qualifications of leadership, reputation, influence, stature and public profile measured by objective and uniformly applied standards in compliance with state bar and national Rule 4-7.”

Additionally, Mr. Miles has maintained an AV Preeminent Rating in securities law with Martindale-Hubble since 2014, their highest award given. The coveted AV Preeminent rating is reserved for “[a]n elite group of approximately 10 percent of all attorneys.” Additionally, while Martindale’s peer review ratings have been trusted for decades because they are based on the opinions and feedback of fellow legal practitioners, the organization’s special judicial edition rating, which Mr. Miles received this year for the sixth year in a row, is an even higher honor. As Martindale notes, the prestigious judicial rating is its highest possible distinction, and is representative of the opinions of both a lawyer’s peers and members of the judiciary.

CONTACT
The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
300 Centerview Dr., #247
Brentwood, TN 37027
Phone:(855) 846-6529
Email: [email protected]
Websites:
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