Material Event (Form 8-K)

Item 8.01 Other Events.

San Diego Health Alliance, Inc. d/b/a Fashion Valley CTC ("Fashion Valley"), an indirect subsidiary of Acadia Healthcare Company, Inc. (the "Company"), is a defendant in an employment-related lawsuit filed in the Superior Court of San Diego County, California. Fashion Valley operates a comprehensive treatment center where a former employee who was terminated in October 2023 filed suit alleging retaliatory termination. Fashion Valley vehemently denied the allegations and asserted the plaintiff was terminated for legitimate reasons.

The case went to trial in late April 2026, and on May 12, 2026, a jury awarded the plaintiff compensatory damages of $35 million and punitive damages of $70 million. This award far exceeds any reasonable expectation based on precedent for comparable employment cases. The Company, which is not a party to the lawsuit, and Fashion Valley strongly disagree with the verdict and remain confident in Fashion Valley's legal position based on the underlying facts of the case. Fashion Valley is evaluating all legal options and intends to vigorously challenge the verdict in post-trial motions and, if necessary, on appeal. We can make no assurances regarding the ultimate outcome of the case or whether the damages awarded by the jury will ultimately be reduced.