The power of a student blog post

Investors shrugged off AAC Holdings Inc.’s disclosure last week that its former president and several former employees had been indicted by the state of California for “second-degree murder” of a patient at one of the company’s substance-abuse treatment centers. But a blog post this week from Chris Drose, a 21-year-old Furman senior, alleging widespread negligence at the company, also known as American Addiction Centers, pushed the stock down as much as 54% and shaved nearly $387 million off its market capitalization. The Wall Street Journal reported on the post by Drose, who is double majoring in Economics and English at Furman.