Garden City Employees’ Retirement System v. Psychiatric Solutions, Inc.

Practice Area:

Outcome: $65 million settlement

Our firm served as liaison counsel in this securities class action lawsuit filed in 2009. The lawsuit alleged that Psychiatric Solutions deceived investors about its financial condition, the quality of care it was providing to patients, and the liquidity of its malpractice reserves. After missing predicted earnings due to the rise of malpractice costs and expenses tied to an investigation of one of its facilities, Psychiatric Solutions’ stock tumbled to $9.79 per share, causing enormous losses to its investors.

 

After five years of hard fought litigation, lead counsel Robbins Geller Rudman & Dowd, along with our firm, obtained final approval of a $65 million settlement on behalf of shareholders who had purchased the company’s stock between February 21, 2008 and February 25, 2009.  This extraordinary result was achieved on the eve of trial. In approving the settlement, the federal District Court Judge described the settlement as a “highly favorable result achieved for” the shareholders.

 

To learn more about our Securities Class Action practice group, click here.


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