The Shareholders Foundation announces that a deadline is coming up on February 2, 2015 in the settlement reached in the securities class action lawsuit filed on behalf of investors who purchased shares of Psychiatric Solutions Inc (NASDAQ: PSYS) between February 21, 2008 to February 25, 2009.
Investors who purchased a significant amount of shares of Psychiatric Solutions Inc (NASDAQ: PSYS) between February 21, 2008 to February 25, 2009, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The settlement proof of claim form or detailed settlement notice for the settlement in the Psychiatric Solutions Inc (NASDAQ: PSYS) Investor Securities Class Action Lawsuit can be downloaded at: http://shareholdersfoundation.com/case/psychiatric-solutions-inc-nasdaq-psys-investor-securities-class-action-lawsuit-09212009
In order to submit a claim an investor has to submit the claim proof to the class action claim administrator in a timely manner. The deadline to submit the proof with the class administrator is February 2, 2015. The class action administrator for this case is Gilardi & Co, LLC.
The lawsuit was originally filed in in the U.S. District Court for the Middle District of Tennessee against Psychiatric Solutions Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between February 21, 2008 and February 25, 2009.
According to the complaint the plaintiff alleges that Psychiatric Solutions Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between February 21, 2008 and February 25, 2009, materially false and misleading statements concerning Psychiatric Solutions Inc safeguards and controls over its operations, including at its Riveredge Hospital facility. The plaintiff accuses that the defendants downplayed incidents at Psychiatric Solutions Inc facilities, indicating that the deficiencies had all been resolved and that defendants assured investors that corrective actions had already been taken at its facilities to improve the quality, safety and risk management. The plaintiff claims that as a result of defendants’ false and misleading statements, Psychiatric Solutions Inc stock (NASDAQ: PSYS) traded at artificially inflated prices between February 21, 2008 and February 25, 2009. On July 17, 2008, the Chicago Tribune issued an investigative report which disclosed unreported violence among juvenile patients at Psychiatric Solutions Inc’s Riveredge Hospital facility.
As a result of the Chicago Tribune’s investigation, the Illinois Department of Children and Family Services placed a hold on admitting youths in the custody of the state to Riveredge Hospital. As a further result, the Department of Justice initiated an investigation into the facility and its operations, so the lawsuit. Then, on February 25, 2009, Psychiatric Solutions Inc announced the fourth quarter and year-end financial results due. Psychiatric Solutions Inc missed its 2008 income guidance from continuing operations of $2.02 to $2.03 per diluted share, instead reporting $1.92 per diluted share. The guidance miss was based upon the problems at Psychiatric Solutions Inc’s Riveredge Hospital facility, including the effect of the continuing hold at the facility by Illinois Department of Children and Family Services, additional charges related to the investigation and an increase in Psychiatric Solutions general and professional liability reserves, so the lawsuit.
Psychiatric Solutions Inc, located in Franklin, TN, is a provider of inpatient behavioral healthcare services in the United States. The Company operates 95 inpatient behavioral healthcare facilities with approximately 10,000 beds in 31 states, Puerto Rico, and the United States Virgin Islands. Psychiatric Solutions Inc reported in 2007 Total Revenue of $1.46068billion with a Net Income of $76.21million and in 2008 Total Revenue of $1.7659billion with a Net Income of $107.88million. Shares of Psychiatric Solutions traded recently at $29.63 per share and were down from a 52weekHigh of $40.90 per share and almost $42 per share in 2007.
On November 15, 2010 Psychiatric Solutions Inc was acquired by Universal Health Services Inc.
Those who purchased shares of Psychiatric Solutions Inc (NASDAQ: PSYS) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com