---
schema_version: "secwatch.filing_event.v1"
accession: "0001193125-23-266248"
form_type: "8-K"
ticker: "ACHC"
cik: "0001520697"
company_name: "Acadia Healthcare Company, Inc."
filed_at: "2023-10-30T23:59:59+00:00"
generated_at: "2026-06-09T05:54:56.909498+00:00"
event_type: "litigation"
sentiment: "negative"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Acadia Healthcare settles New Mexico civil litigation for $400M, no admission of liability

## Summary
- $400M aggregate settlement to resolve three New Mexico state court cases; no admission of liability.
- Payment from insurance, cash ($112.2M at June 30) and $505M revolver; due 30 days after court approval.
- Settlement expense recorded in Q3 2023, excluded from adjusted EBITDA; reaffirms existing guidance.
- Company affirms strong financial position with net leverage ~2.0x and sufficient capital for investments.
- Settlements fully release Acadia and Desert Hills from all claims related to the lawsuits.

## SEC filing metadata
- accession: 0001193125-23-266248
- form_type: 8-K
- ticker: ACHC
- cik: 0001520697
- company_name: Acadia Healthcare Company, Inc.
- filed_at: 2023-10-30T23:59:59+00:00
- event_type: litigation
- sentiment: negative
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 1.01, 9.01, 10.2, 10.3
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1520697/000119312523266248/0001193125-23-266248-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1520697/000119312523266248/d557598d8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001193125-23-266248
- JSON: https://secwatch.observer/filing/0001193125-23-266248.json
- Plain text: https://secwatch.observer/filing/0001193125-23-266248.txt

## Key facts
- Material Agreements
  Acadia Healthcare Company, Inc. entered into Settlement Agreements valued at an aggregate amount of $400 million (effective 2023-10-30).
  - Action: entry
  - Agreement: settlement
  - Value: an aggregate amount of $400 million
  - Effective: 2023-10-30
  source text: On October 30, 2023, Acadia Healthcare Company, Inc. (“Acadia” or “the Company”) and its subsidiary Youth and Family Centered Services of New Mexico (“Desert Hills”) entered into settlement agreements (collectively, the “Settlement Agreements”) in connection with Acadia and Desert Hills’ previously disclosed civil litigation in New Mexico State District Court
  evidence_url: https://www.sec.gov/Archives/edgar/data/1520697/000119312523266248/0001193125-23-266248-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.