Robbins Geller Rudman & Dowd LLP successfully represented the class. King & Spalding LLP assisted Acadia Healthcare Company, Inc., Brent Turner, David Duckworth, and Joey A. Jacobs.
On January 20, 2021, the Honorable William L. Campbell, Jr. of the United States District Court for the Middle District of Tennessee denied defendants’ motion to dismiss in St. Clair County Employees’ Retirement System v. Acadia Healthcare Company, Inc., a case alleging Acadia and certain of its officers violated §§10(b) and 20(a) of the Securities Exchange Act of 1934. Lead plaintiffs are New York Hotel Trades Council and Hotel Association of New York City, Inc. Pension Fund and the Chicago Laborers’ Pension Fund.
Acadia is a healthcare company that operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities, and facilities providing outpatient behavioral healthcare services to communities throughout the United States, the United Kingdom, and Puerto Rico.
The case alleges that defendants made materially false and misleading statements and omissions regarding Acadia’s business and operations and falsely stated that: (i) offering quality care was of fundamental importance to Acadia’s business model, and that its facilities provided high-quality care that would drive Acadia’s success; (ii) Acadia adequately staffed its facilities to ensure its ability to provide appropriate care to patients; (iii) Acadia’s facilities were in compliance with relevant regulatory requirements; and (iv) Acadia’s U.K. operations would achieve substantial revenue and earnings growth in the face of nursing shortages and negative media reports about the company’s operations. As a result of defendants’ false statements, Acadia stock traded at artificially inflated prices of more than $80 per share during the class period. While Acadia stock was trading at these artificially inflated prices, the company’s CEO, President, and CFO sold more than 1.1 million shares of their Acadia stock for proceeds of more than $65 million.
The Robbins Geller team included Darren J. Robbins (Picture), Jerry E. Martin, Christopher M. Wood, Darryl J. Alvarado, Marco Janoski, and Ting H. Liu.
The King & Spalding team included Brandon R. Keel, Derek S. Hammond, Jessica Perry Corley, and Lisa R. Bugni.
Involved fees earner: Lisa Bugni – King & Spalding; Jessica Perry Corley – King & Spalding; Derek Hammond – King & Spalding; Brandon Keel – King & Spalding; Darryl Alvarado – Robbins Geller Rudman & Dowd; Marco Janoski Gray – Robbins Geller Rudman & Dowd; Ting Liu – Robbins Geller Rudman & Dowd; Jerry Martin – Robbins Geller Rudman & Dowd; Darren Robbins – Robbins Geller Rudman & Dowd; Christopher Wood – Robbins Geller Rudman & Dowd;
Clients: Acadia Healthcare Company, Inc.; Chicago Laborers’ Pension Fund; Duckworth David; Jacobs Joey; New York Hotel Trades Council & Hotel Association of New York City, Inc. Pension Fund ; St. Clair County Employees’ Retirement System; Turner Brent;