Acadia investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Acadia is a for-profit healthcare company focused on operating inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities and facilities providing outpatient behavioral healthcare services in the United States, United Kingdom (“U.K.”) and Puerto Rico.
The Class Period commences on February 23, 2017, when Acadia issued a release entitled “Acadia Healthcare Reports Fourth Quarter GAAP EPS of $0.48 and Adjusted EPS of $0.59; Establishes Financial Guidance for 2017.” On February 24, 2017, Acadia filed with the SEC its annual report on Form 10-K for the year ended December 31, 2016. The 2016 Form 10-K discussed the “[f]avorable industry and legislative trends” that Acadia believed were one of its “competitive strengths,” specifically including its U.K. operations. The 2016 Form 10-K, also characterized Acadia as “the leading independent provider of mental health services in the U.K.”
The complaint alleges that, on October 24, 2017, Acadia issued a release announcing its financial results for the third quarter of 2017. Contrary to the defendants’ representations, Acadia 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, Acadia stock lost 26% of its value, falling from a closing price of $44.12 per share on October 24, 2017 to a closing price of $32.68 per share on October 25, 2017.
The complaint alleges that throughout the Class Period, the defendants misrepresented and failed to disclose that: (a) the quality of Acadia’s U.K. operations did not give Acadia a “competitive strength” that would drive future growth and profitability; and (b) the 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.
If you are a member of the class described above, you may no later than December 3, 2018 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
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Radnor, PA 19087
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