AAC Holdings, Inc. (AAC) Accused of Misleading Investors

According to the complaint for alleged violations of the Securities Exchange Act of 1934 between March 8, 2017 and April 15, 2019, since 2017, AAC Holdings, Inc. (AAC) had attested to the accuracy of its filings. However, AAC failed to disclose that its internal controls over financial reporting and disclosure controls and procedures were inadequate to accurately reflect adjustments related to estimates for accounts receivable, provision for doubtful accounts, and revenue. In April 2019, AAC issued a press release announcing that its annual reports for previous years, as well as all quarterly reports, could no longer be relied on. On this news, AAC’s stock price fell $0.40 per share, or over 18%, to close at $1.74 per share on April 16, 2019, and continues to decline.