STEVENSON, Md.--(BUSINESS WIRE)--

The securities litigation law firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty and other violations of law by the Board of Directors of Civitas Solutions, Inc. (NYSE: CIVI) (“Civitas” or the “Company”).

According to public sources, for several years, the Company, operating through its service agency, The MENTOR Network and other related entities, as one of the largest for-profit providers of foster care services, has been at the center of investigations by the news media as well as the U.S. Senate Finance Committee. In an October 2017 report titled An Examination of Foster Care in The United States and the Use of Privatization, the Senate Committee identified numerous wide-ranging deficiencies by the Company regarding child placement and foster family background screening; that “[s]ome children served by MENTOR were abused, neglected, and denied services”; that “investigations about fatalities were never followed up, autopsy reports which were pending years ago are not part of case files, and the vast majority of children who died were not the subject of an internal investigation” and that the Company had paid significant financial settlements to resolve negligence claims (for example, nine settlements in Illinois totaling $19.5 million), which had also resulted in what the Company described in a 2014 SEC filing as “less favorable insurance terms” and “greater amounts [expensed] to fund potential claims.”

Brower Piven’s investigation is focusing on whether Civitas’ officers and/or directors breached their fiduciary duties or otherwise violated state or federal laws. If you have information that would assist Brower Piven in its investigation, or have been a long-term holder of Civitas shares and would like to discuss your legal rights, without cost or obligation to you, please contact Brower Piven either by email at [email protected] or by telephone at (410) 415-6616.

Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s.

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