Activist Shareholders Demand Strategic Review and Governance Reforms at Acadia Healthcare

Khrom Investments Fund, LP, Khrom Capital Management LLC, and Eric Khrom (collectively owning 5.5% of Acadia Healthcare) filed a Schedule 13D urging immediate action to address chronic underperformance. The filing highlights Acadia's 45% stock decline over 10 years, contrasting with peers' gains, and attributes this to poor strategic decisions including failed international expansion and misaligned executive compensation. The investors demand: 1) Immediate initiation of a formal strategic review process including potential sale of the company, 2) Accelerated governance reforms (de-staggering the board by 2029, implementing director tenure/age limits), and 3) Alignment of leadership incentives through meaningful equity ownership. The letter references a pending DOJ investigation and $1B+ capex program as ongoing risks. Shareholders threaten further action including director nominations if demands aren't met, citing recent 17M+ votes against board member Reeve Waud as evidence of eroding confidence.