AAC Holdings is the parent company to a treatment facility known as A Better Tomorrow that has been the focus of quite a bit of unsavory news lately. Unfortunately for AAC, this news has led to a drastic decline in the company’s stock and is likely to continue doing so. Today, we’ll explain what the focus has been on with regard to the stock recently, what we’ve seen in the market, and what we can expect to see moving forward.
A Better Tomorrow Is Charged With Alleged Murder!
Yes, you read that heading correctly. A Better Tomorrow, the primary subsidiary of AAC Holdings has been charged with Murder. It started in July of 2010 when a man by the name of Gary Benefield entered into treatment at the company’s treatment center. Prior to seeking treatment, Benefield worked in a coal power plant in Springerville, Arizona. Prior to entering treatment, Benefield faced several respiratory ailments including pneumonia, emphysema, and chronic obstructive pulonary disease. As a result, he used an oxygen tank to assist in his breathing. Unfortunately, that oxygen tank was emptied at the airport and A Better Tomorrow failed to provide him with more oxygen once he arrived.
Mr. Benefield complained to staff of the issue. However, instead of providing him with the oxygen he needed, staff members gave him a mix of anti-anxiety and anti-depressant medications. Ultimately, Benefield went to bed that night with no oxygen. During the night, staff members who were required to check on patients failed to perform their regular check just after midnight. Sadly, Mr. Benefield passed away the next day as a result of being deprived of the oxygen. He leaves behind a wife as well as at least one child that looked up to him as a step-father. To make matters worse, Benefield passed away on his 53rd birthday.
Following the death of Mr. Benefield, an indictment was brought against A Better Tomorrow for murder, but sealed shortly thereafter. However, on July 29th, California prosecutors made the decision to unseal the indictment; ultimately charging A Better Tomorrow as well as four other individuals in the murder of Mr. Benefield.
Surprisingly enough, Gary Benefield’s story isn’t the only story of its kind that comes out of A Better Tomorrow. As a matter of fact, Forbes reports that Benefield’s death was only one of four deaths that took place within A Better Tomorrow’s facilities over the course of two and a half years. One of those deaths was a 68 year old woman who couldn’t walk and was intoxicated when she arrived at the treatment center. According to the Senate Office, “this should have raised questions about whether she was too unstable to enter the program.”
How The Market Has Reacted To The News
Following the indictment and resulting Forbes article, in late July, AAC Holdings’ stock fell dramatically. From July 31st to August 12th, the stock has fallen from $38.01 to $19.50 per share.
What To Expect Moving Forward
Moving forward, the future of AAC Holdings and its stock is relatively unclear. The reality is that an indictment for murder can be incredibly costly. Even in the case that the treatment facility is not found guilty, this event is likely to bring up civil cases and rewards given to the families of victims who passed away while undergoing treatment at the company’s facilities. With that said, while we may see slight gains here and there, I’m not expecting any major positive movement from the stock any time soon.