SAN DIEGO & BRENTWOOD, Tenn.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of AAC Holdings, Inc. (NYSE: AAC) breached their fiduciary duties to the company and its shareholders by intentionally deceiving investors about a criminal investigation that could adversely affect the company's inherent value. AAC Holdings provides inpatient substance abuse treatment services for individuals with drug and alcohol addiction in the U.S.
View this press release on the law firm's Shareholder Rights Blog:
AAC Holdings is Accused of Deceiving Investors About a Criminal Investigation
On July 1, 2016, the U.S. District Court Middle District of Tennessee, Nashville Division denied a motion to dismiss a securities fraud class action filed against AAC and certain executives. According to the complaint, AAC deceived investors about an active criminal investigation—of which the company was aware of as early as 2013 and prior to its initial public offering—by the California Department of Justice, which materialized into an indictment against AAC for, among other things, second-degree murder of an AAC patient. The complaint alleges that AAC deliberately disregarded the federal securities laws by concealing the criminal investigation at the time of its initial public offering despite being aware of the facts surrounding the investigation.
AAC Holdings Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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