On December 28, 2017, Lead Plaintiffs and Defendants memorialized their agreement to resolve the consolidated securities class action lawsuit captioned Kasper v. AAC Holdings, Inc. et al., Case No. 3:15-cv-923 (M.D. Tenn.). This certified class action was brought against the Company, as well as several current and former directors and officers following allegations that the Defendants made materially misleading statements and omissions concerning a criminal investigation by the California Department of Justice into the death of an AAC patient. His death was recently the subject of a lengthy expose by The New York Times on January 24, 2018 entitled “Giant, Under Attack.” The terms of the agreement provide for a settlement payment to the class of twenty-five million dollars ($25,000,000) in cash. Named Individual Defendant Jerrod N. Menz will seed part of the settlement fund by selling 300,000 of his personally held shares – a rarity in securities class actions. The settlement is subject to Court approval.