SAN DIEGO--(BUSINESS WIRE)--Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by certain officers and directors at Psychiatric Solutions, Inc. ("Psychiatric Solutions" or the "Company") (NASDAQ:PSYS). Psychiatric Solutions provides inpatient behavioral healthcare services in the United States. Its services include nursing observation and care, daily interventions and oversight by a psychiatrist, and coordinated treatment by a physician-led team of mental health professionals. The Company was founded in 1988 and is headquartered in Franklin, Tennessee.
Robbins Umeda LLP's investigation concerns whether the Company's directors and officers caused the Company to make material misstatements, as well as fail to maintain adequate safeguards and controls over Psychiatric Solutions' operations, including at its Riveredge Hospital ("Riveredge") facility. Specifically, the Company failed to properly account for its contingent liabilities related to the deficiencies surrounding its operations.
These alleged material misstatements and omissions may have caused Psychiatric Solutions' stock to trade at artificially inflated prices. On February 25, 2009, the Company announced disappointing fourth quarter and year end financial results due to the problems at Riveredge. Upon this news, Psychiatric Solutions' stock fell $9.79 per share to close at $17.50 per share on February 26, 2009, a one day decline of 35%, causing substantial losses to shareholders.
A lawsuit alleging violations of the Securities Exchange Act of 1934 has been filed on behalf of shareholders who purchased or otherwise acquired Psychiatric Solutions stock between February 21, 2008 and February 25, 2009, seeking recovery from Psychiatric Solutions and certain of its officers for the damages they have suffered as a result of the officers' mismanagement of the Company. Securities class actions like this can potentially cause additional damage to the Company.
If you purchased your Psychiatric Solutions stock prior to February 21, 2008, continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Lauren Levi at 800-350-6003 or by e-mail at firstname.lastname@example.org.
Robbins Umeda LLP is a California-based law firm, which has significant experience representing investors in shareholder derivative actions, securities fraud class actions, and merger-related shareholder class actions. For more information about the firm, please go to http://www.robbinsumeda.com.