A lawsuit was filed on behalf of investors in AAC Holdings Inc (NYSE:AAC) shares over alleged securities laws violations and NYSE:AAC investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 09/21/2015 -- An investor in shares of AAC Holdings Inc (NYSE:AAC), filed a lawsuit Tennessee agaisnt AAC Holdings Inc over alleged violations of Securities Laws.
Investors who purchased shares of AAC Holdings Inc (NYSE:AAC) have certain options and for certain investors are short and strict deadlines running. Deadline: October 23, 2015. NYSE:AAC investors should contact the Shareholders Foundation at mail@shareholdersfoundation or call 858-779-1554.
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.
Shareholders Foundation, Inc.
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