AAC Holdings Must Face Investor Suit on Alleged Marketing Scheme

AAC Holdings Inc. must face a would-be class suit alleging it made misleading statements about its sales and marketing practices and accounts receivable after a federal judge in Tennessee found the investor allegations sufficient to move forward.

The addiction treatment services provider’s investors properly alleged that AAC acted with the required mental state for liability, made actionable misstatements, and caused their losses, the U.S. District Court for the Middle District of Tennessee said.

The investors accused AAC of making misleading statements about its accounts receivable, which caused the company to make false financial statements and eventually required it to ...