On July 14, 2017, the Hon. Jon P. McCalla certified a class of shareholders of AAC Holdings, Inc. (NYSE: AAC) in a lawsuit arising from Defendants’ misleading statement regarding a criminal investigation into the death of an AAC patient. Judge McCalla also appointed KSF and one other law firm as Class Counsel. The case is Kasper v. AAC Holdings, Inc., No. 15-cv-00923, pending in the Middle District of Tennessee. Defendants have sought permission to appeal the ruling pursuant to Fed. R. Civ. P. 23(f).
The lawsuit alleges that California prosecutors informed AAC of the investigation in 2013, but the company withheld that information from the investing public until AAC’s then-president Jerrod Menz, AAC and four current-or-former employees were indicted for second degree murder and dependent adult abuse in connection with the patient death. Judge McCalla certified a class of investors comprising:
[a]ll persons and entities who purchased or otherwise acquired AAC securities between October 2, 2014, and August 4, 2015 at 9:40 a.m. (EDT). Excluded from the class are Defendants, directors, and officers of AAC, as well as their families and affiliates.
KSF managing partner Lewis Kahn explained that class certification “is an important step forward in obtaining compensation for AAC’s investors.” He added that “we look forward to bringing the case to trial.” The KSF attorneys working on the case include Ramzi Abadou, Alexander Burns, Alayne Gobeille and Scott St. John.