SOURCE: Kendall Law Group

Kendall Law Group

September 25, 2009 13:14 ET

Kendall Law Group Announces Securities Class Action Against Psychiatric Solutions, Inc.

DALLAS, TX--(Marketwire - September 25, 2009) - Kendall Law Group, led by a former federal judge and former US Attorney, announced today that a lawsuit has been filed against Psychiatric Solutions, Inc. (NASDAQ: PSYS) for securities fraud related to public statements made by the company between February 21, 2008 and February 25, 2009.

Any shareholder, who purchased Psychiatric Solutions stock during the above time period, may move the Court to serve as a plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by November 23, 2009. A lead plaintiff is a class member who acts on behalf of other class members in directing the litigation. If you wish to learn more about your rights as a shareholder or serving as a plaintiff, contact attorney Hamilton Lindley at 877-744-3728 or hlindley@kendalllawgroup.com.

The complaint, filed in the Middle District of Tennessee, charges Psychiatric Solutions and certain of its officers and directors with violations of the federal securities laws as a result of their false and misleading statements issued regarding their safeguards and controls over its operations. Defendants downplayed incidents at their facilities, and indicated that deficiencies had all been resolved. Psychiatric Solutions also assured investors that corrective actions had taken place at the facilities to improve the quality, safety and risk management. The Company failed to properly account for its contingent liabilities regarding these deficiencies and issued false statements regarding their financial results.

On February 25, 2009, Psychiatric Solutions announced their disappointing fourth quarter and year-end financial results due to problems at their Riveredge facility. The Company reported $1.92 per diluted share, falling short of its 2008 income guidance from continuing operations of $2.02-$2.03. As a result of this announcement, PSYS stock fell by $9.79 to close at $17.50 per share on February 26, 2009.

Although every case is different, Kendall Law Group has participated in the recovery of over $800 million for defrauded shareholders. Led by a former federal judge and former U.S. Attorney, the firm has the credentials to pursue any type of complex securities litigation in the nation. If you wish to learn more about your rights as a shareholder or serving as a lead plaintiff, contact attorney Hamilton Lindley at 877-744-3728 or hlindley@kendalllawgroup.com.

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