#United States #Acadia Healthcare #Charles C. Foti #Kahn Swick & Foti #New Orleans

Investigation Overview

On February 21, 2025, Charles C. Foti, Jr., who previously held the position of Louisiana's Attorney General, declared that his law firm, Kahn Swick & Foti, LLC (KSF), has initiated an investigation focused on Acadia Healthcare Company, Inc., a company publicly traded on Nasdaq under the symbol ACHC. This announcement arrives on the heels of significant financial disclosures from Acadia and the receipt of requests for information from federal authorities.

Background of Concerns

The investigation stems from a series of troubling disclosures made by Acadia Healthcare. On September 27, 2024, the company revealed that it had been issued a voluntary request for information by the U.S. Attorney's Office for the Southern District of New York. Additionally, a grand jury subpoena was served from the United States District Court for the Western District of Missouri. These legal actions are reportedly linked to inquiries regarding Acadia's admission processes, length of patient stays, and billing practices.

In a further development, on October 30, 2024, Acadia Healthcare adjusted its financial outlook downwards, forecasting full-year revenues in the range of $3.15 to $3.165 billion, alongside an adjusted EBITDA forecast of $725 to $735 million. This financial revision was attributed partially to a concerningly slow growth rate in same-store patient days, recorded at merely 3% during October. Such unfavorable financial indicators have raised questions regarding the company's operational practices and executive decision-making.

Legal Action and Probes

In addition to the investigation launched by KSF, Acadia Healthcare faces a securities class action lawsuit. This lawsuit alleges that the company failed to disclose critical information, thus violating federal securities laws. The ongoing litigation compounds the existing scrutiny that Acadia is undergoing, heightening concerns among shareholders and potential investors.

Focus of the Investigation

The focus of KSF's investigation seeks to determine if Acadia's executives or board members have violated their fiduciary duties to shareholders. This includes assessing whether they have failed to safeguard shareholder interests or breached any laws—either at the state or federal level. The implications of this investigation could be significant for the company's leadership as well as its stock performance.

How to Provide Information

Individuals having insights or information pertinent to this investigation, especially those who have maintained a long-term hold on Acadia shares, are encouraged to reach out to KSF. Interested parties can contact the firm without any obligation by calling toll-free at 1-877-515-1850 or emailing Managing Partner Lewis Kahn at email protected]. More information regarding the ongoing investigation can be found at KSF's official website, [www.ksfcounsel.com.

About Kahn Swick & Foti, LLC

Kahn Swick & Foti, LLC is a prominent boutique securities litigation law firm, boasting a team that includes former Louisiana Attorney General Charles C. Foti, Jr. The firm provides legal counsel to a diverse client base comprising public institutional investors, hedge funds, money managers, and individual retail investors. Their objective centers on aiding clients in pursuing recoveries pertaining to investment losses that stem from corporate wrongdoing or fraud perpetrated by publicly traded entities. KSF operates across several offices located in major U.S. cities such as New York, California, and Louisiana, and aims to stand at the forefront of investor protection.