American Addiction Centers stock drops from $46.60 to $2.00
Closures, layoffs – plot thickens –
December 6, 2018 – The Current has obtained an email addressed to all AAC staff, in which CEO Michael Cartwright notifies employees of the closure of the company’s San Diego Addiction Treatment Center, discloses the layoffs, and says the company is “exploring strategic options” for facilities in Louisiana. “While AAC will continue to save lives of those seeking our help, as a publicly-traded company, we have a responsibility to be good stewards of our financial resources: this responsibility includes a strategic focus to improve the overall quality and efficiency of operations within the company,” Cartwright wrote in the email. AAC became a publicly traded company in 2014. The stock reached a peak of $46.60 in July 2015 and has since plunged to $2. “For several years AAC has saved thousands of lives in our treatment centers around the country,” the spokesman said. The company has been plagued by allegations of conflict of interest relating to its drug testing business and was targeted by short-sellers. In July, Cartwright testified, along with other industry representatives, before a congressional subcommittee examining online marketing practices in the addiction recovery industry.
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Klean ‘kollapse’? Local employees left in limbo by rehab company
What Goes Up… –
Dec 7, 2018 – Rehab empire The 30-bed rehab center on Pioneer Road opened in 2013. It is one of several Klean-brand treatment facilities owned by White Rabbit Partners, Inc., a West Hollywood-based holding corporation. Until recently, White Rabbit, operated Klean outpatient treatment and sober living facilities in Astoria, but those appear to have closed now. White Rabbit also runs Klean programs in Hollywood, LaPine, Oregon, Bend and Portland, but local employees say these programs have also reportedly closed. White Rabbit also owns Klean Media, which produces recovery and sobriety-related broadcast, as well as a “specialty lending company” called BHC Financial. Spanswick founded White Rabbit in 2006. He is the public face of the company, but he runs it with his business partners, Dr. Jason Coe and Dr. Mark Honzel, both of Los Angeles.
