Court Grants Final Approval to $179 Million Settlement in Acadia Healthcare

Chief Judge William L. Campbell, Jr. of the United States District Court for the Middle District of Tennessee granted final approval of a $179 million settlement resolving securities fraud claims against Acadia Healthcare and certain former executives. Robbins Geller Rudman & Dowd LLP represented lead plaintiffs Chicago & Vicinity Laborers’ District Council Pension Fund and New York Hotel Trades Council & Hotel Association of New York City, Inc. Pension Fund.

“It’s a great result for the investors,” partner Christopher M. Wood, class counsel for a class of investors, told Bloomberg Law. “It’s the second largest securities class action recovery in this court, and we’re proud of our clients’ leadership in bringing the case to this conclusion.”

Investors alleged that defendants made materially false and misleading statements regarding, among other things, the adequacy of patient care at Acadia facilities, staffing levels, regulatory compliance, and the company’s financial projections.

A jury trial was scheduled to begin in Nashville when the case resolved. During over seven years of litigation, Robbins Geller defeated defendants’ motion to dismiss the complaint and secured class certification. Plaintiffs filed a motion for partial summary judgment, and defendants filed a motion for summary judgment in the lead-up to trial. The court granted plaintiffs’ motion and denied defendants’ motion, clearing the way for trial.

Robbins Geller attorneys Darren Robbins, Darryl J. Alvarado, Christopher M. Wood, Jerry E. Martin, Sam S. Sheldon, J. Marco Janoski Gray, Ting H. Liu, and T. Alex B. Folkerth achieved this result for investors.

St. Clair County Employees’ Retirement System v. Acadia Healthcare Company, Inc., No. 3:18-cv-00988 (M.D. Tenn.).