An investigation on behalf of current investors in Psychiatric Solutions, Inc. (NASDAQ:PSYS) concerning shareholder claims over possible breaches of fiduciary duty by the board of directors of Psychiatric Solutions was announced.

The investigation by law firm focuses on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Psychiatric Solutions arising out of their attempt to sell Psychiatric Solutions, Inc. (PSYS) to Universal Health Services, Inc. (NYSE: UHS). Psychiatric Solutions, Inc., located in Franklin, TN, is a provider of inpatient behavioral healthcare services in the United States. Psychiatric Solutions, Inc. reported in 2007 Total Revenue of $1.4147billion, in 2008 $1.69612billion, and in 2009 $1.80536billion.On Monday, May 17, 2010, Psychiatric Solutions, Inc. (NASDAQ: PSYS) and Universal Health Services, Inc. (NYSE: UHS) announced that they have reached a definitive agreement whereby Universal Health Services will acquire Psychiatric Solutions for a price of $33.75 per share in cash, or approximately $2.0 billion. According to Psychiatric Solutions the transaction was approved by its Board of Directors.

Shares of Psychiatric Solutions, Inc. (PSYS) fell to $32.28 per share after the announcement, and traded at $33.15 per share the trading day before the news. PSYS were at almost $40 per share during 2008, and at almost $42 per share during 2007.

The investigation by a law firm concerns whether the Psychiatric Solutions, Inc Board of Directors breached their fiduciary duties to Psychiatric Solutions (PSYS) stockholders by failing to adequately shop the Company prior to entering into the agreement, whether the Board of Directors breached their fiduciary duties by not seeking a deal that would provide better value Psychiatric Solutions, Inc. (PSYS), and whether Universal Health Services, Inc. (NYSE: UHS) is underpaying for Psychiatric Solutions, Inc. (NASDAQ:PSYS), thus unlawfully harming PSYS stockholders.