$485 Million Verdict for Child Sexually Abused in Foster Care Overseen by Acadia Healthcare Subsidiaries

In 2018, a girl identified in court records only as G.S. was placed by Familyworks, Inc. into the Albuquerque home of Clarence Garcia. At the time, Garcia had abuse allegations in his background that dated back to at least 2000. Over the following months, Garcia sexually assaulted her repeatedly. He later pleaded guilty to seven counts of criminal sexual contact with a minor and was linked to abuse involving six children over six years.

Familyworks was a nonprofit operating under contract with Acadia Healthcare Company, Inc. and its New Mexico subsidiary, Youth and Family Centered Services of New Mexico (also known as Desert Hills). The lawsuit, filed in 2019 by G.S.'s court-appointed guardian, alleged that the defendants placed Garcia as a licensed foster parent despite knowing of those prior allegations, and that their collective negligence enabled the abuse.

After nearly two weeks of testimony before a Rio Arriba County jury in Tierra Amarilla, the verdict came in on July 7, 2023. Jurors awarded $485 million in total damages. Acadia Healthcare was ordered to pay $80 million in compensatory damages and $250 million in punitive damages. Youth and Family Centered Services of New Mexico and Familyworks were each assessed $75 million, along with additional punitive damages. The award represented one of the largest personal-injury verdicts in New Mexico history.

Joshua Conaway of Fadduol, Cluff, Hardy and Conaway served as co-counsel for G.S. alongside co-counsel firms Claggett and Sykes (Las Vegas) and Martinez, Hart, Sanchez and Romero (Albuquerque). Conaway stated publicly that the verdict 'sends a clear message that children are valued and for-profit companies can't turn a blind eye to their safety while hoarding profits.'

Following the verdict, Acadia Healthcare negotiated a settlement of three related Garcia cases for $400 million in total. Of that amount, $200 million was allocated to G.S.'s case, with the remaining $200 million split between two other children abused by Garcia. Acadia acknowledged no liability under the settlement terms.