BRENTWOOD, Tenn.--(BUSINESS WIRE)--AAC Holdings, Inc. (NYSE: AAC) announced that, as expected, it filed motions to dismiss the indictment in the California case on January 22, 2016. In its motions, the Company highlighted many reasons that it believes a dismissal of all charges is warranted, including:
- Failing to call the coroner and instead calling a paid consultant to the plaintiff in the civil case and misrepresenting to the grand jury the coroner’s findings and the contents of his records to make it appear that the patient’s death was a homicide
- Repeated violations of the prosecutor’s duty to present exculpatory evidence
- Repeatedly presenting inadmissible evidence to the grand jury including hearsay and opinion testimony
- Presenting no evidence of probable cause that any of the Defendants had the requisite malice required for a second degree murder case
- Incorrectly advising the grand jury that it could interpret licensing statutes to find the client was a dependent adult
- Failing to instruct on essential elements of some offenses and affirmatively mis-instructing on the law for other offenses
The Company also disclosed that the Chief Medical Examiner-Coroner for Los Angeles County, Dr. Mark A. Fajardo, signed a declaration that was also filed with the Court that contradicts claims made by the California Attorney General’s office and testimony provided by paid experts in grand jury testimony. Dr. Fajardo previously served as Chief Forensic Pathologist of the Riverside County Sheriff-Coroner and performed the autopsy on the individual who died of natural causes in 2010. In a ruling on January 22, the Court ordered the complete coroner’s file to be produced to the Court.
From this declaration, the Company noted the following points from Dr. Fajardo:
- “I have since reviewed the deputy coroner’s report prepared in connection with [decedent]’s death (Exhibit C). That review confirms that I was, as I testified during my deposition [in Kelly Benefield v. ABTTC, Inc., et al. (Riverside Superior Court No. RIC 1112376)], aware at the time of the autopsy of [decedent]’s medical history, including his dependence on supplemental oxygen and the fact that he had flown from Arizona without the benefit of oxygen.”
- “At the time I reached my opinion as to the cause of [decedent]’s death, I was aware of his COPD diagnosis, his need for supplemental oxygen, and I believed that his oxygen tank had been emptied in order for him to fly to California.”
- “It was and continues to be my expert opinion, as expressed in my Autopsy Protocol, that the Serax and Trazadone did not contribute to or cause [decedent]’s death. The lack of supplemental oxygen, which I was aware of at the time of the autopsy, similarly did not cause or contribute to [decedent]’s death.”
- “I have never been contacted by the California Attorney General’s Office about [decedent]’s death, and I was not asked to testify before a grand jury about [decedent]’s death.”
Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings, noted, “We are thankful that Dr. Fajardo has come forward with his public declaration stating that the decedent died of hypertensive cardiovascular disease and that he stands by his initial opinion. Clearly, we believe his testimony should have been heard by the grand jury. We look forward to the judicial process as we have complete faith in the American judicial system.”
About American Addiction Centers
American Addiction Centers is a leading provider of inpatient substance abuse treatment services. We treat clients who are struggling with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues. We operate 18 substance abuse treatment facilities. Located throughout the United States, these facilities are focused on delivering effective clinical care and treatment solutions. For more information, please find us at AmericanAddictionCenters.org or follow us on Twitter @AAC_Tweet. Copies of the Company’s legal filings can be found at AACtheTruth.com.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are made only as of the date of this release. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “may,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements may include information concerning AAC Holdings, Inc.’s (collectively with its subsidiaries; “Holdings” or the “Company”) possible or assumed future results of operations, including descriptions of Holdings’ revenues, profitability, outlook and overall business strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from the information contained in the forward-looking statements. These risks, uncertainties and other factors include, without limitation: (i) our inability to operate our facilities; (ii) our reliance on our sales and marketing program to continuously attract and enroll clients; (iii) a reduction in reimbursement rates by certain third-party payors for inpatient and outpatient services and point of care and definitive lab testing; (iv) our failure to successfully achieve growth through acquisitions and de novo expansions; (v) uncertainties regarding the timing of the closing of acquisitions; (vi) the possibility that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of acquisitions; (vii) our failure to achieve anticipated financial results from contemplated acquisitions; (viii) a disruption in our ability to perform definitive drug testing services; (ix) maintaining compliance with applicable regulatory authorities, licensure and permits to operate our facilities and lab; (x) a disruption in our business related to the recent indictment of certain of our subsidiaries and current and former employees; (xi) our inability to agree on conversion and other terms for the balance of convertible debt; (xii) our inability to meet our covenants in the loan documents; (xiii) our inability to obtain senior lender consent to exceed the current $50 million limit in unsecured subordinated debt; (xiv) our inability to integrate newly acquired facilities; (xv) a disruption to our business and reputational and potential economic risks associated with the civil securities claims brought by shareholders; and (xvi) general economic conditions, as well as other risks discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission. As a result of these factors, we cannot assure you that the forward-looking statements in this release will prove to be accurate. Investors should not place undue reliance upon forward looking statements.