Franklin, Tenn.-based Acadia disclosed that one of its indirect subsidiaries was ordered to pay $105 million in damages in an employment-related lawsuit, according to a May 18 Securities and Exchange Commission filing.
San Diego Health Alliance, doing business as Fashion Valley Comprehensive Treatment Center, which operates as a provider of medically supervised medication-assisted treatment for adults in California, was sued by a former employee who was terminated in October 2023. The lawsuit alleged retaliatory termination.
Michelle Giaquinta alleged she was sexually harassed by both a patient and a coworker while working as a counselor at Fashion Valley and was later fired after reporting the incidents, The San Diego Union-Tribune reported May 16. The center alleged the plaintiff failed to properly document patient interactions.
In late April of this year, the case went to trial. On May 12, a jury awarded the plaintiff compensatory damages of $35 million and punitive damages of $70 million, according to the filing.
Acadia said Fashion Valley “vehemently denied” the allegations and maintained the employee was terminated for legitimate reasons. The company also said the award “far exceeds any reasonable expectation based on precedent for comparable employment cases.”
Acadia, which is not a party to the lawsuit, said Fashion Valley is evaluating legal options and plans to challenge the verdict through post-trial motions and an appeal, if necessary.
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