Psychiatric Solutions, Inc. Securities Litigation
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Welcome to the Psychiatric Solutions, Inc. Securities Litigation Settlement Website

This website has been established to provide general information regarding the proposed Settlement of the consolidated action known as Garden City Employees’ Retirement System v. Psychiatric Solutions, Inc., et al., Civil Action No. 3:09-cv-00882-WJH, pending in the United States District Court for the Middle District of Tennessee, Nashville Division (the "Litigation"), before the Honorable William J. Haynes, Jr. The capitalized terms used on this website and not defined herein shall have the same meanings ascribed to them in the Stipulation of Settlement dated October 10, 2014, which can be found and downloaded by clicking on the Case Documents tab above. Your rights may be affected by this Settlement if you purchased or otherwise acquired Psychiatric Solutions, Inc. ("PSI" or the "Company") securities between February 21, 2008 and February 25, 2009, inclusive (the "Class Period").

This is a federal securities class action brought on behalf of all Persons who purchased or otherwise acquired the securities of PSI during the Class Period. Lead Plaintiff alleges that Defendants violated §§10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”) by engaging in a fraudulent course of conduct that misled investors about PSI’s growth and operations of its facilities; made false and misleading statements about the quality of its facilities, the treatment of its patients and the impact of regulatory violations; and materially understated loss reserves for malpractice claims brought against the Company. Lead Plaintiff alleged that this course of conduct and these materially false and misleading statements caused PSI securities to trade at artificially inflated prices. After extended fact discovery, the parties attended formal mediation where the parties reached an agreement to resolve the Litigation on the specific terms set forth in the Stipulation of Settlement. Defendants deny each and all of the claims and contentions of wrongdoing alleged by Lead Plaintiff in the Litigation.

The parties disagree on both liability and damages and do not agree on the average amount of damages per PSI securities that would be recoverable if the Class prevailed on each claim alleged. The Defendants deny that they are liable to the Class and deny that the Class has suffered any damages.

The principal reason for the Settlement is the benefit to be provided to the Class now. This benefit must be compared to the risk that no recovery might be achieved after a contested trial and likely appeals, possibly years into the future.

In exchange for the Settlement and the release of the Released Claims (as defined in the Notice) as well as dismissal of the Litigation, Defendants have agreed that a payment of $65 million will be made by Defendants (or on their behalf) to be divided, after taxes, fees, and expenses, among all Class Members who send in a valid Proof of Claim and Release form. Your share of the fund will depend on several things, including how many Class Members submit timely and valid Proof of Claim and Release forms, the total Recognized Losses represented by the valid Proof of Claim and Release forms that Class Members send in, the number and type of shares of PSI securities you purchased or acquired, how much you paid for the shares, when you purchased or acquired, and if you sold your shares and for how much.

The Court ordered that the law firm of Robbins Geller Rudman & Dowd LLP represents the Class Members, including you. These lawyers are called Lead Counsel. You will not be charged for these lawyers. They will be paid from the Settlement Fund to the extent the Court approves their application for fees and expenses. If you want to be represented by your own lawyer, you may hire one at your own expense.

Although the information in this website is intended to assist you, it does not replace the information contained in the Notice of Settlement of Class Action, Motion for Attorneys' Fees and Settlement Fairness Hearing and Stipulation of Settlement, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.


SUBMIT A CLAIM FORM The only way to get a payment. Proof of Claim forms must be postmarked or submitted online on or before February 2, 2015.
EXCLUDE YOURSELF Get no payment. This is the only option that allows you to ever be part of any other lawsuit against the Defendants or any other Released Persons about the legal claims in this case. Exclusions must be received on or before December 29, 2014. If you submitted a request for exclusion in response to the Notice of Pendency of Class Action you received in April or May 2012, you do not have to exclude yourself again.
OBJECT Write to the Court about why you do not like the Settlement, the Plan of Allocation, and/or the request for attorneys’ fees, costs, and expenses. You will still be a member of the Class. Objections must be received by the Court and counsel on or before December 29, 2014.
GO TO A HEARING Ask to speak in Court about the fairness of the Settlement. Requests to speak must be received by the Court and counsel on or before December 29, 2014.
DO NOTHING Get no payment. Give up your rights.


Submit Claim: February 2, 2015
Request Exclusion: December 29, 2014
File Objection: December 29, 2014
Court Hearing on Fairness of Settlement January 16, 2015