Franklin, Tenn.-based Acadia Healthcare has agreed to settle a securities lawsuit for $179 million, according to a Nov. 10 filing with the Securities and Exchange Commission.
The settlement, reached Nov. 7, resolves a previously disclosed case in the U.S. District Court for the Middle District of Tennessee. Acadia did not admit liability as part of the agreement, which is pending preliminary and final court approval.
Acadia said it plans to fund the settlement using about $30 million in anticipated insurance proceeds, along with cash on hand and existing credit lines. The company will record the net settlement amount as an expense in the quarter ending Dec. 31.
As of Sept. 30, Acadia reported $118.7 million in cash and cash equivalents, with $786.7 million available under its $1 billion revolving credit facility, according to the filing. Acadia said the settlement will not affect its previously announced financial guidance, as the expenses will be excluded from adjusted EBITDA.
