An investigation on behalf of investors of Civitas Solutions Inc (NYSE:CIVI) shares over potential securities laws violations by Civitas Solutions Inc (NYSE:CIVI and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Civitas Solutions Inc (NYSE:CIVI) concerning whether a series of statements by Civitas Solutions Inc (NYSE:CIVI regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Boston, MA based Civitas Solutions, Inc. is a provider of home- and community-based health and human services to individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. Civitas Solutions, Inc. markets its services nationally as The MENTOR Network, which is a national network of local health and human services providers in 36 states offering an array of quality, community-based services to adults and children with intellectual and developmental disabilities, brain and spinal cord injuries and other catastrophic injuries and illnesses.

Civitas Solutions Inc reported that its Total Revenue rose from over $1.4 billion for the 12 months period that ended on September 30, 2016 to over $1.47 billion for the 12 months period that ended on September 30, 2017 and that its Net Income over those respective time periods declined from $9.19 million to $6.33 million.

On October 17, 2017, the United States Senate Committee on Finance issued a report detailing an investigation of foster care privatization. In this report, the Finance Committee used The MENTOR Network as a case study, determining that 'In MENTOR's case in particular, investigations into fatalities were never followed up after the fact; autopsy reports which were pending years ago were excluded from files; and the vast majority of children who died were not the subject of internal investigations, even when their deaths were unexpected. In addition, the Committee stated that The MENTOR Network has issued millions of dollars in settlements to families of 'victims of inadequate care

Shares of Civitas Solutions Inc (NYSE:CIVI) reached as high as $19.80 per share in late 2017. Since then NYSE:CIVI shares declined to as low as $11.80 per share on February 9, 2018.