The Crestwood Behavioral Health lawsuit history spans several decades and covers patient deaths and neglect at its California psychiatric facilities, wage and retaliation claims from former employees, a dispute with the state over Medi-Cal payments, and a recent data breach notification. Crestwood, founded in 1968, operates 31 campuses across California and is one of the state’s largest private providers of psychiatric and recovery services.1Crestwood Behavioral Health. About Crestwood Behavioral Health The cases below are the ones with public filings, published rulings, or confirmed settlements.
Patient Death and Neglect Lawsuits
The most serious claims against Crestwood have involved patients who died or were seriously harmed in its care.
Martha Young was admitted to Crestwood’s Vallejo facility in 2008 in relatively stable condition, needing care for mental health issues and diabetes. Within two months, according to legal filings, she had stopped eating, drinking, and taking medication, suffered two diabetic comas, and entered a permanent vegetative state. Her family alleged the facility failed in its basic responsibility to ensure patients consume food, water, and medication. The case settled for nearly $2 million in April 2011, just before jury selection.2Psychcrime.org. Report: Crestwood Behavioral Health
Dora Rodriguez, a patient at Crestwood Manor in Vallejo, had terminal liver disease and was classified as a high fall risk after multiple falls. In February 2014, a physician ordered one-to-one monitoring, but the Napa County conservator authorized funding for only two weeks. Once that funding expired, Crestwood reduced her supervision to checks every 15 minutes, despite documentation indicating staff needed to be positioned directly behind her whenever she stood. On March 1, 2014, Rodriguez fell and suffered a subdural hematoma. She died five days later. Her daughter sued for elder abuse, professional negligence, and wrongful death. A trial court initially granted Crestwood partial summary judgment, but the California Court of Appeal reversed in December 2018, finding Crestwood had not shown the absence of genuine factual disputes on the monitoring claim, and ordered the case to proceed.3CaseMine. Hernandez v. Crestwood Behavioral Health, Inc.
An earlier federal case, Simpson v. Contra Costa County, Crestwood Behavioral Health, et al., was filed in the Northern District of California in March 2003 alleging civil rights deprivation, wrongful death, and dependent adult abuse. It settled in April 2004; the terms were not publicly disclosed.2Psychcrime.org. Report: Crestwood Behavioral Health
A 2018 incident at the Vallejo facility involved 32-year-old patient Marcus Tenes, who walked away from the facility and was later found dead, reportedly by suicide. The facility’s psychiatrist was criticized for failing to recognize the patient’s risk.2Psychcrime.org. Report: Crestwood Behavioral Health
State and Federal Regulatory Actions
Alongside civil suits, regulators have repeatedly cited Crestwood facilities. In July 2015, the California Department of Public Health issued its most severe citation and fined Crestwood Manor in Fremont $100,000 after a patient with known swallowing difficulties choked to death on a piece of meat. Inspectors found the facility had failed to provide a safe dining environment or implement the patient’s care plan.2Psychcrime.org. Report: Crestwood Behavioral Health
Federal regulators from the Department of Health and Human Services have issued Statements of Deficiencies at multiple Crestwood locations, including the Fremont facility in 2019 for staff assaulting an elderly patient, the Redding facility for failing to protect a patient from physical abuse by another resident, and the Sunnyvale location for repeated failures to report abuse allegations, medication errors, and inadequate supervision.
A December 2019 Los Angeles Times investigation identified nearly 100 preventable deaths at California psychiatric facilities over the preceding decade, citing low staffing, staff errors, lack of training, and unsafe environments. The report noted specific incidents at Crestwood facilities, including a patient death at the Bakersfield location for which state investigators found the company partially responsible, and two patient deaths at its Santa Barbara crisis residential facility since 2009.4Los Angeles Times. Psychiatric Hospital Deaths California
Wage and Hour PAGA Lawsuit
Former Crestwood employee Maricris Fragoza filed a Private Attorneys General Act lawsuit alleging Crestwood systematically failed to properly compensate non-exempt employees across its statewide network. The claims included unpaid overtime, failure to provide meal and rest breaks or pay required premiums, inaccurate wage statements, and failure to timely pay final wages upon termination.5FindLaw. Crestwood Behavioral Health, Inc. v. Superior Court of Alameda County
Fragoza had worked in Solano County but filed in Alameda County, where Crestwood operated two facilities. Crestwood tried to move the case to Sacramento (its headquarters) or Solano. In February 2021, the California Court of Appeal rejected Crestwood’s position, holding that venue in a PAGA action is proper in any county where an aggrieved employee worked and where the alleged Labor Code violations occurred. The court called Crestwood’s argument “metaphysical” and affirmed the denial of the transfer motion.6vLex. Crestwood Behavioral Health, Inc. v. Superior Court of Alameda County Employment defense commentators noted the ruling could encourage plaintiffs to file PAGA claims in jurisdictions considered more favorable to employees.7CDF Labor Law LLP. CA Appellate Court Invites PAGA Plaintiffs to Go Forum Shopping
Retaliation Complaint and Arbitration Ruling
Deeveria Lacy, a former “recovery coach” at Crestwood’s San Francisco facility, filed a retaliation complaint with the California Labor Commissioner in January 2019, alleging she was fired after reporting an on-the-job assault. Crestwood petitioned to compel arbitration under its employee dispute resolution policy and asked the court to halt the Labor Commissioner’s investigation. The trial court sided with Crestwood, ordered arbitration, and stayed the Commissioner’s proceedings.8FindLaw. Crestwood Behavioral Health, Inc. v. Garcia-Brower
The Labor Commissioner intervened and appealed. In October 2021, the California Court of Appeal reversed. The court held that when the Commissioner investigates retaliation complaints under Labor Code section 98.7, she acts as a prosecutor enforcing public law, not as an adjudicator resolving a private dispute. Because of that prosecutorial role, the Federal Arbitration Act does not allow a private arbitration agreement to block the investigation.9California Department of Industrial Relations. Retaliation Complaint Investigation Legislative Report
Employee Injury Case
Christine Mendiola, who worked with mentally ill residents at a locked Crestwood facility, was attacked during a night shift on July 11, 2011, while monitoring clients during a smoke break. She alleged Crestwood failed to report the assault to the Department of Mental Health, the Department of Social Services, or the county mental health director. A California appellate court ruled her remedy was limited to workers’ compensation for the injuries sustained in the attack.10WorkCompCentral. Mendiola v. Crestwood Behavioral Health, Inc.
Medi-Cal Reimbursement Suit Against the State
Not every Crestwood case involves Crestwood as defendant. Crestwood and several other providers sued the California Department of Health Care Services over how it calculates supplemental payments to skilled nursing facilities. The providers operate Special Treatment Programs for patients with chronic psychiatric impairments and receive a small daily reimbursement. The state excluded STP days from calculations under the Quality and Accountability Supplemental Payment system because those days are not audited. Crestwood argued this cost providers millions in supplemental payments and discouraged psychiatric care.11Justia. Crestwood Behavioral Health, Inc. v. Baass
The providers filed petitions for writs of mandate, relying on Welfare and Institutions Code section 14170, which treats cost reports not audited within three years as “true and correct.” In May 2023, the California Court of Appeal for the Third District rejected the argument, ruling the statute gives the department discretion over which reports to audit and does not create a mandatory duty to treat unaudited data as audited. The court also found that including unaudited STP days would violate the state’s own plan, which requires the use of audited bed days.12FindLaw. Crestwood Behavioral Health, Inc. v. Baass
2024–2025 Data Breach Notification
In 2025, Crestwood disclosed that patient data may have been compromised in a ransomware attack on its outside law firm, Boutin Jones, which occurred on October 15, 2024. Crestwood was notified of the breach on May 30, 2025, and completed a review of the affected documents on July 10, 2025. The potentially exposed information included patient names, dates of birth, medication and diagnosis records, lab results, patient identification numbers, vital signs, and clinical photographs. Boutin Jones sent notification letters to affected individuals on July 21, 2025, and offered 12 months of complimentary credit monitoring.13Crestwood Behavioral Health. Privacy Policy – Data Breach Notification