AAC Holdings Announces Resolution with California’s Attorney General and All Charges Dismissed Against Corporate Entities
October 24 2016 - 6:30AM
Business Wire
AAC Holdings, Inc. (NYSE: AAC) announced that certain of its
subsidiaries have reached a resolution with the Attorney General of
the State of California. Under terms of a stipulated settlement,
which was entered by court order on October 21, 2016, the Attorney
General of the State of California has dismissed all criminal
charges against the Company’s subsidiaries, American Addiction
Centers, Inc. (formerly known as Forterus, Inc.), Forterus Health
Care Services, Inc. and ABTTC, Inc. in the case entitled People v.
McCausland, et al.
As part of the settlement, the Company has agreed to implement
and maintain over the next three years certain compliance, internal
audit and quality review programs to ensure high standards for
safety, reliability and clinical outcomes for its operations in
California. These programs will be monitored by an independent
party for effectiveness at the Company’s expense. AAC will pay the
State of California $549,986 for costs related to the legal
proceedings and $200,000 as a civil monetary penalty.
Michael Cartwright, Chairman and Chief Executive Officer of AAC
Holdings noted, “We are pleased to put this matter behind us and to
clear the Company’s subsidiaries. We can now fully focus our
commitment and passion on serving clients and their families who
are overwhelmed by addiction in California and throughout the
United States.”
About American Addiction Centers
American Addiction Centers is a leading provider of inpatient
and outpatient substance abuse treatment services. We treat clients
who are struggling with drug addiction, alcohol addiction, and
co-occurring mental/behavioral health issues. We currently operate
substance abuse treatment facilities located throughout the United
States. These facilities are focused on delivering effective
clinical care and treatment solutions. For more information, please
find us at AmericanAddictionCenters.org or follow us on Twitter
@AAC_Tweet.
Forward Looking Statements
This release contains forward-looking statements within the
meaning of the federal securities laws. These forward-looking
statements are made only as of the date of this release. In some
cases, you can identify forward-looking statements by terms such as
“anticipates,” “believes,” “could,” “estimates,” “expects,” “may,”
“potential,” “predicts,” “projects,” “should,” “will,” “would,” and
similar expressions intended to identify forward-looking
statements, although not all forward-looking statements contain
these words. Forward-looking statements may include information
concerning AAC Holdings, Inc.’s (collectively with its
subsidiaries; “Holdings” or the “Company”) possible or assumed
future results of operations, including descriptions of Holdings’
revenues, profitability, outlook and overall business strategy.
These statements involve known and unknown risks, uncertainties and
other factors that may cause our actual results and performance to
be materially different from the information contained in the
forward-looking statements. These risks, uncertainties and other
factors include, without limitation: (i) our inability to operate
our facilities; (ii) our reliance on our sales and marketing
program to continuously attract and enroll clients; (iii) a
reduction in reimbursement rates by certain third-party payors for
inpatient and outpatient services and point of care and definitive
lab testing; (iv) our failure to successfully achieve growth
through acquisitions and de novo expansions; (v) uncertainties
regarding the timing of the closing of acquisitions; (vi) the
possibility that a governmental entity may prohibit, delay or
refuse to grant approval for the consummation of an acquisition;
(vii) our failure to achieve anticipated financial results from
prior acquisitions; (viii) a disruption in our ability to perform
definitive drug testing services; (ix) maintaining compliance with
applicable regulatory authorities, licensure and permits to operate
our facilities and lab; (x) a disruption in our business and
reputation and potential economic consequences associated with the
civil securities claims brought by shareholders; (xi) our inability
to agree on conversion and other terms for the balance of
convertible debt; (xii) our inability to meet our covenants in the
loan documents; (xiii) our inability to obtain senior lender
consent to exceed the current $50 million limit in unsecured
subordinated debt; (xiv) our inability to integrate newly acquired
facilities;; and (xv) general economic conditions, as well as other
risks discussed in the “Risk Factors” section of the Company’s
Annual Report on Form 10-K, and other filings with the Securities
and Exchange Commission. As a result of these factors, we cannot
assure you that the forward-looking statements in this release will
prove to be accurate. Investors should not place undue reliance
upon forward looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20161024005459/en/
SCR PartnersInvestor Contact:Tripp Sullivan,
615-760-1104IR@contactAAC.comorMedia Contact:Joy Sutton,
615-587-7728Mediarequest@contactAAC.com
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