Saxena White P.A. Files Securities Fraud Class Action Against Acadia Healthcare Company, Inc. and Certain of Its Executives, Expanding the Class Period and Allegations Asserted in Related Action

Core Viewpoint - A securities fraud class action lawsuit has been filed against Acadia Healthcare Company, alleging that the company made materially false and misleading statements regarding its business practices and financial performance during the class period from February 8, 2020, to October 30, 2024 [1][2]. Company Overview - Acadia Healthcare is described as the leading publicly traded pure-play provider of behavioral healthcare services in the United States, focusing on high-quality, cost-effective services while aiming to grow its business and profitability [4]. - The majority of Acadia's revenue is derived from acute inpatient psychiatric facilities, with significant payments coming from Medicaid programs [4]. Allegations in the Class Action - The lawsuit claims that Acadia engaged in deceptive practices, including holding patients against their will and beyond medically necessary durations to secure continued payments from payors [5]. - It is alleged that Acadia pressured emergency rooms to admit patients and delayed patient releases through legal maneuvers, creating a false impression of patients' mental states [5]. - The complaint asserts that these practices would lead to government investigations and negatively impact Acadia's relationships with referral sources, ultimately affecting patient volumes and financial outlook [5]. Impact of Media Reports - The truth about Acadia's practices began to surface following a New York Times article published on September 1, 2024, which reported on the company's alleged wrongful detainment of patients, resulting in a stock price drop of over 4.5% [6]. - Subsequent articles revealed a $20 million settlement with the U.S. Department of Justice and investigations into Acadia's practices, leading to further declines in stock price, including a drop of over 16$3.15 billion and $3.165 billion, along with adjusted EBITDA guidance of$725 million to $735 million, attributing the decline to slower patient day growth [11]. - Following this announcement, Acadia's stock price fell by over 18%, reflecting the market's reaction to the negative news and revised financial outlook [11].