Summary
Ongoing illicit practices at Acadia Healthcare have been highlighted by a recent investigative report, revealing that the company has continued engaging in questionable activities related to patient admissions and billing practices. This has led to federal investigations and a significant decline in the company’s stock value.
The investigations stem from multiple disclosures by Acadia Healthcare, one of the largest for-profit psychiatric hospital chains in the U.S. On September 27, 2024, the company announced it received a voluntary request for information from the U.S. Attorney’s Office for the Southern District of New York and a grand jury subpoena from the U.S. District Court for the Western District of Missouri. These inquiries relate to the company’s admissions practices, length of patient stays, and billing methods. The scrutiny intensified following a settlement in which Acadia agreed to pay $19.85 million over allegations of submitting false claims to Medicare and Medicaid for services that were not medically necessary, as well as improperly admitting and discharging patients. An investigative report from The New York Times further indicated that many of these practices, which were previously identified as problematic between 2014 and 2017, persist today.
Federal Investigations and Stock Impact
The recent investigations have had a notable impact on Acadia’s stock performance. Following the announcements, shares of the company dropped significantly, reflecting investor concerns over potential legal repercussions and financial liabilities. On the day of the disclosures, Acadia’s stock price fell by more than 17%, and at one point, it was down 25%. This decline is indicative of investor apprehension regarding the company’s compliance with federal laws and the ongoing scrutiny it faces.
Legal Consequences and Shareholder Actions
As a result of the investigations, several law firms have initiated inquiries into Acadia’s practices, urging shareholders who may have suffered losses to come forward. Legal firms like Holzer & Holzer, LLC, and Bleichmar Fonti & Auld LLP are investigating potential violations of federal securities laws and are encouraging affected investors to seek legal recourse. The ongoing nature of these investigations suggests that Acadia Healthcare may face significant legal challenges ahead, potentially affecting its operations and financial stability.
Oct. 5 / Benzinga / Highlights the ongoing federal investigations into Acadia Healthcare, providing crucial context for investors. The authoritative voice of Bleichmar Fonti & Auld LLP adds credibility, though it leans toward self-promotion. “ NEW YORK, Oct. 05, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Acadia Healthcare Company,...
Oct. 1 / Benzinga / Reiterates the key points about Acadia's legal troubles and stock decline while emphasizing the firm's investigative role. The repetitive nature of the content may not provide new insights for informed readers. “ NEW YORK, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Acadia Healthcare Company,...
Sep. 27 / Benzinga / Covers Holzer & Holzer's investigation into Acadia's compliance with securities laws, effectively targeting affected investors. However, it lacks a broader perspective on the implications of the ongoing investigations. “ ATLANTA, Sept. 27, 2024 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether Acadia Healthcare Company, Inc. ("Acadia" or "the Company") ACHC...
Acadia Healthcare Says It Faces New Federal Investigations
Sep. 27 / The New York Times / Offers a concise overview of Acadia's stock drop and federal scrutiny, making it a valuable source for investors seeking timely updates. However, it lacks depth and detailed analysis compared to other reports. “ Shares of the company, one of the largest chains of for-profit psychiatric hospitals, were down 25 percent at one point.