Acadia Healthcare to pay $400M to settle Desert Hills litigation

In a regulatory filing, Acadia Healthcare announced that it and its subsidiary Youth and Family Centered Services of New Mexico entered into settlement agreements in connection with Acadia and Desert Hills’ previously disclosed civil litigation in New Mexico State District Court. The Settlement Agreements fully resolve each of the Cases and include no admission or finding of liability by Acadia or Desert Hills, Acadia said. Under the terms of the Settlement Agreements, which are subject to approval by the District Court, the company will pay an aggregate amount of $400M in exchange for the release and discharge of all claims arising from, relating to, concerning or with respect to all harm, injuries or damages asserted or that may be asserted in the future. Because the settlement funds will be excluded from adjusted EBITDA, the settlement has no impact on the company’s previously announced financial guidance. The company also affirmed that it maintains a strong financial position with sufficient capital to make strategic investments in its business.