Acadia Accused of Making Materially False and Misleading Statements to Investors Regarding Its Business and Operations
According to a recently filed class action complaint, Acadia Healthcare materially misled the investing public, which had the effect of inflating the prices of Acadia’s securities. Beginning on February 23, 2017, Acadia represented in its public filings and press releases that it was “the leading independent provider of mental health services in the U.K” and that “avorable industry and legislative trends” gave the company a “competitive strength,” which would drive future growth and profitability. Acadia further misrepresented the extent of the company’s actual and projected 2017 revenue, earnings before interest, taxes, depreciation and amortization (“EBITA”) and earnings per share (“EPS”). With Acadia’s stock artificially inflated, its officers and directors sold over $143 million worth of Acadia stock through a continuous offering process. On October 24, 2017, Acadia announced its financial results for the third quarter 2017, which revealed a drastic shortfall in EBITA for its U.K. facilities and a lowered financial guidance for 2017, including EPS. As a result, Acadia’s stock plunged 26% on October 25, 2017, on extremely high volume.
Acadia Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Lauren Levi, at Llevi@robbinsllp.com or via the shareholder information form below.