RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased AAC Holdings, Inc. (“AAC” or the “Company”) (NYSE: AAC) between March 8, 2017 and April 15, 2019, inclusive (the “Class Period”).
AAC shareholders may, no later than July 15, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of AAC and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
AAC was founded in 2014 and is headquartered in Brentwood, Tennessee. The Company provides inpatient and outpatient substance use treatment services for individuals with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues in the United States.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) AAC’s internal control over financial reporting and disclosure controls and procedures was inadequate to accurately reflect adjustments related to estimates for accounts receivable, provision for doubtful accounts, and revenue; (ii) AAC consequently misstated financial and operating results in its annual reports for fiscal years 2016 and 2017, as well as all quarterly reports throughout 2017 and 2018; (iii) accordingly, those reports could not be relied upon, requiring AAC to restate the financial and operating results reflected therein; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On April 16, 2019, AAC issued a press release, appended as an exhibit to the Company’s Current Report on Form 8-K filed with the SEC, announcing AAC’s financial results for the fourth quarter and fiscal year ended December 31, 2018, and providing guidance for 2019 (the “April 2019 Press Release”). The April 2019 Press Release disclosed that the Company’s annual reports for fiscal years 2017 and 2016, as well as all quarterly reports throughout 2017 and 2018, could no longer be relied upon, and stated that these financial statements would be restated to reflect adjustments related to estimates for accounts receivable, provision for doubtful accounts, and revenue.
On this news, AAC’s stock price fell $0.40 per share, or 18.69%, to close at $1.74 per share on April 16, 2019.