August 4, 2015
Bernstein Liebhard LLP is investigating whether AAC Holdings, Inc. (“AAC” or “the Company”) (NYSE: AAC) issued materially false and misleading statements to investors in violation of the federal securities laws.
On July 29, 2015, after the market closed, the Company disclosed that an indictment returned by a grand jury had been unsealed in connection with an investigation by the California Department of Justice. The indictment, which related to the death of a patient in 2010 at AAC’s subsidiary, American Addiction Centers, asserts charges against subsidiaries of AAC and two current and three former employees. On this news, AAC stock fell from a July 29, 2015 closing price of $39.07 per share to close on July 30, 2015 at $37.49 per share.
On August 4, 2015, the Company revealed that its former president was among those indicted. Further, an August 4, 2015 article by Bleecker Street Research reported that AAC had reason to know in 2013 about the criminal investigation that led to the recent murder indictment, but the Company did not disclose the criminal investigation to investors in its Securities and Exchange Commission filings. As a result of these August 4, 2015 disclosures, AAC stock collapsed as a result – falling over 30%.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.