United Health Services Wins $6.9 Million Verdict In Non-Compete Claim Against Acadia Healthcare

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On December 22, 2012, ModernHealthcare.com reported that United Health Services (“UHS”), based in King of Prussia, Pennsylvania, won a $6.89 million jury verdict against Acadia Healthcare (“Acadia”), a healthcare company based in Franklin, Tennessee.

According to the article, UHS filed suit in October 2011 in Denton County, Texas alleging five former executives breached their non-compete agreements and misappropriated UHS’ confidential information when they went to work for Acadia.  The five former executives were employed by Horizon Health Corp., a subsidiary of Psychiatric Solutions, which UHS acquired in 2010.  Acadia is a venture of Psychiatric Solutions’ former CEO.  UHS’ suit alleged the five former executives set up an Acadia subsidiary, Psychiatric Research Partners, which mirrored the operations of Horizon Health Corp.  The five former executives then pursued sales leads they acquired while at Horizon Health Corp. on behalf of Arcadia.

In addition to UHS’ charges against the five former executives, UHS also charged Acadia with misappropriating its confidential sales leads.

The Denton County, Texas jury returned a verdict in favor of UHS for $6.89 million in what was described as a case that was “litigated in a very heated manner.”

UHS’ president stated he hopes the jury’s verdict “sends a message about the appropriate conduct of business and commitment to ethics and integrity.”

It remains to be seen whether Acadia will appeal the verdict.

The complete modernhealthcare.com article can be viewed online here.

If you would like additional information on trade secrets law, please contact one of the Burr & Forman Non-Compete & Trade Secrets team members.

Topics:  Misappropriation, Non-Compete Agreements, Trade Secrets

Published In: Civil Remedies Updates, General Business Updates, Intellectual Property Updates, Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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