On October 11, 2023, Acadia Healthcare Company, Inc. (“Acadia” or “the Company”) and its subsidiary Youth and Family Centered Services of New Mexico (“Desert Hills”), in connection with Acadia and Desert Hills’ previously disclosed civil litigation in New Mexico State District Court (the “District Court”), Inman v. Garcia, et al, Case No. D-117-CV-2019-00136 (the “Inman Litigation”) (in which a jury previously awarded compensatory and punitive damages), filed an unopposed motion to stay the District Court’s requirement of posting a bond and execution of its judgment on Acadia, Desert Hills or Family Works, a not-for-profit treatment foster care program to which Desert Hills provided management services.
The parties have made substantial progress following mediation on October 6, 2023 and October 7, 2023 in an effort to reach a settlement agreement to resolve the Inman Litigation – as well as the two other related cases – Rael v. Garcia, et al, Case No. D-117-CV-2019-00135 and Endicott-Quinones v. Garcia, et al, Case No. D-117-CV-2019-00137 (together with the Inman Litigation, the “Cases”). As such, given the substantial progress made to date towards reaching a settlement regarding the Cases, the Company believes this unopposed motion delaying the bond posting is necessary and appropriate to allow for settlement discussions and efforts to finalize a written agreement regarding the Cases to continue unimpeded. In the motion, Acadia and Desert Hills agreed to provide the District Court with a status update of these ongoing negotiations within 14 days from entry of the proposed order.
Cautionary Statements Regarding Forward-Looking Statements
The foregoing discussion of the Cases and the settlement discussions related thereto contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause the Company’s future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are first made. Except to the extent required by law, the Company undertakes no obligation to publicly update forward-looking statements. Investors should read the important risk factors described in the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the U.S. Securities and Exchange Commission.
