The Complaint alleges that throughout and before the Class Period, defendants made materially false and misleading statements and omissions regarding Acadia's business and operations. Specifically, defendants falsely stated that the quality of Acadia's U.K. operations gave it a "competitive strength" that would drive future growth and profitability. In addition, defendants caused Acadia to issue false and misleading guidance regarding the Company's actual and projected fiscal 2017 revenue, earnings before interest, taxes, depreciation and amortization ("EBITDA") and earnings per share ("EPS").

It is alleged that defendants' false and misleading statements caused Acadia's stock to trade at artificially inflated prices during the Class Period. While Acadia's stock price was artificially inflated by defendants' misconduct, Acadia's Chief Executive Officer and President were able to offload 706,000 shares of Acadia stock, or more than half the total number of shares they beneficially owned, for proceeds of over $35 million.

On October 24, 2017, Acadia issued a release announcing its financial results for the third quarter of 2017. Contrary to defendants' representations, the Company revealed a drastic shortfall in EBITDA for its U.K. operations. In addition, Acadia lowered its financial guidance for 2017, including lowering its EPS guidance by as much as $0.24 per share. As a result of these revelations, which began to disclose the relevant truth that had previously been concealed from the market, Acadia's stock price plummeted 26%, closing at under $33 per share on October 25, 2017, from a closing price of $44.12 per share on October 24, 2017, causing hundreds of millions of dollars in harm to Acadia shareholders.