An investigation on behalf of current long term investors in AAC Holdings Inc (NYSE:AAC) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NYSE:AAC stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 12/23/2015 -- An investigation for shareholders in shares of AAC Holdings Inc concerning potential breaches of fiduciary duties by certain AAC Holdings directors was announced.
Investors who are current long term investors in AAC Holdings Inc (NYSE:AAC shares, have certain options and should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
The investigation by a law firm for current long term investors in NYSE:AAC stocks follows a lawsuit that was filed against AAC Holdings Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:AAC stocks, concerns whether certain AAC Holdings officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Middle District of Tennessee the plaintiff alleges that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between October 2, 2014 and August 3, 2015 defendants made allegedly false and misleading statements and allegedly failed to disclose material information, including with respect to legal proceedings brought against subsidiaries of AAC Holdings Inc and several former and one current employees, including its President at the time, Jerrod N. Menz.
An article alleged that shares of AAC Holdings Inc, also known as American Addiction Centers, are likely to fall by at least 50%, as it inflated its revenues and margins by conducting medically unnecessary testing. The article claims that it revealed that AAC Holdings Inc subsidiaries are testing their clients 6-12x more frequently than necessary and are then running unnecessary confirmatory tests which are then billed to insurance companies. The article further stated that AAC Holdings Inc is already the subject of one lawsuit in New Jersey alleging fraudulent billing with respect to excessive urine testing and that while AAC Holdings Inc has exited New Jersey, the same practices are still going on in other states. Shares of AAC Holdings Inc (NYSE:AAC) declined to as low as $29.75 per share on March 3, 2015.
On August 4, 2015, news reports revealed that several AAC Holdings employees have been named in a criminal indictment alleging murder charges for the death of a former AAC Holdings patient. The employees allegedly named as defendants for the death of the former patient are the AAC Holdings former president, Jerrod Menz, a former board member, a current employee and three former employees. Shares of AAC Holdings Inc (NYSE:AAC) declined from $40.28 per share on July 30, 2015, to as low as $16.38 per share on August 4, 2015.
Those who purchased shares of AAC Holdings Inc (NYSE:AAC) have certain options and should contact the Shareholders Foundation.
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