SOURCE: Izard Nobel LLP

September 24, 2009 16:19 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Psychiatric Solutions, Inc.

WEST HARTFORD, CT--(Marketwire - September 24, 2009) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Middle District of Tennessee on behalf of those who purchased the common stock of Psychiatric Solutions, Inc. ("Psychiatric Solutions" or the "Company") (NASDAQ: PSYS) between February 21, 2008 and February 25, 2009, inclusive (the "Class Period").

The Complaint charges that Psychiatric Solutions and certain of its officers and directors violated federal securities laws. Specifically, defendants issued materially false statements concerning the Company's safeguards and controls over its operations, including at its Riveredge Hospital ("Riveredge") facility. Defendants downplayed incidents at the Company's facilities, indicating that the deficiencies had all been resolved. Defendants assured investors that corrective actions had already been taken at the Company's facilities to improve the quality, safety and risk management. Additionally, defendants issued materially false statements regarding the Company's financial results. Specifically, the Company failed to properly account for its contingent liabilities related to the deficiencies surrounding its operations.

On February 25, 2009, Psychiatric Solutions announced disappointing fourth quarter and year-end financial results due to the problems at Riveredge. The Company missed its 2008 income guidance from continuing operations of $2.02-$2.03 per diluted share, instead reporting $1.92 per diluted share. On this news, Psychiatric Solutions' stock fell $9.79 to close at $17.50 per share on February 26, 2009.

If you are a member of the class, you may, no later than November 20, 2009, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit:, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: For more information about class action cases in general, please visit our website:

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