Why Survivors Are Coming Forward Now
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