Acadia Healthcare Abuse Lawsuits
Acadia Healthcare is one of the largest behavioral-health operators in the U.S. Multiple Acadia facilities — including Timberline Knolls in Illinois — have faced abuse lawsuits and federal scrutiny.
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Timberline Knolls (Lemont, IL) closed February 13, 2025 amid abuse allegations.1
On July 7, 2023, a New Mexico state-court jury awarded $485 million total — $80 million compensatory and $405 million punitive — over the repeated sexual abuse of a young foster child by a foster parent; the child had been placed through FamilyWorks, a treatment foster-care program managed by Acadia subsidiary Desert Hills. Per Acadia's SEC filing and public statement, the abuse occurred in a foster home, not at an Acadia facility, and Acadia disputed responsibility.23
In October 2023, Acadia agreed to pay an aggregate $400 million to settle three New Mexico lawsuits arising from the sexual abuse of children placed with a foster parent through a treatment foster-care program managed by Acadia's Desert Hills subsidiary — including the case in which a jury had returned a $485 million verdict months earlier. The settlements include no admission or finding of liability by Acadia or Desert Hills.4
Acadia agreed to pay $19.85 million to settle U.S. Department of Justice allegations relating to medically unnecessary inpatient behavioral-health services, announced September 26, 2024.5
A New York Times investigation examined Acadia's practices, including holding patients to maximize insurance payments.6
About Acadia Healthcare
Acadia Healthcare is one of the largest behavioral-health operators in the United States, operating facilities across multiple states including Illinois.
Who Can File a Claim
You may be able to pursue a claim if, as a minor, you experienced sexual abuse while a patient at this facility.
Time Limits
Time limits can apply to these claims. The sooner you reach out, the more we may be able to do — and speaking with us is free and confidential.
How We Help
We investigate confidentially, obtain records, and guide you through every step. There is no cost to speak with us, and no fee unless we win.
Why Slater Slater Schulman
For decades, our firm has represented survivors of institutional abuse.
Who We Are
Slater Slater Schulman LLP is a prominent full-service law firm with over 40 years of experience representing survivors of catastrophic and traumatic events, including litigating against the Boy Scouts, clergy, medical professionals, and members of the justice system.
The attorneys at Slater Slater Schulman LLP take a personal approach to representation. We are here to ensure that survivors have the opportunity to confront their past with the full support of our large legal team.
We are honored to have represented more than 3,500 survivors in the historic $4 billion settlement with Los Angeles County—the largest of its kind in history.
Frequently Asked Questions
Sources
Every factual claim on this page is cited to the listed source. Links open the original document; access dates reflect our most recent verification.
- 1.CBS News Chicago report on the closure of Timberline Knolls (effective February 13, 2025) — CBS News Chicago, 2025 (accessed June 9, 2026) ↩
- 2.Acadia Healthcare Form 8-K — New Mexico jury verdict ($80 million compensatory; $405 million punitive) — U.S. Securities and Exchange Commission, July 2023 (accessed June 9, 2026)SEC filing ↩
- 3.KRQE report: New Mexico jury awards $485 million in foster sexual-assault lawsuit — KRQE (Albuquerque), July 12, 2023 (accessed June 9, 2026) ↩
- 4.Acadia Healthcare Form 8-K — settlement of three New Mexico actions ($400 million aggregate; no admission or finding of liability) — U.S. Securities and Exchange Commission, October 30, 2023 (accessed June 9, 2026)SEC filing ↩
- 5.Acadia Healthcare Company Inc. to pay $19.85M to settle allegations relating to medically unnecessary inpatient behavioral health services — U.S. Department of Justice, Office of Public Affairs, September 26, 2024 (accessed June 9, 2026)Official release ↩
- 6.How a Leading Chain of Psychiatric Hospitals Traps Patients — The New York Times, September 1, 2024 (accessed June 9, 2026) ↩
Attorney Advertising. Acadia denies the allegations. Verdicts/settlements referenced involve different survivors and cases; prior results do not guarantee a similar outcome.