Action Behavior Centers, one of the country’s largest providers of Applied Behavior Analysis therapy for children with autism, is currently defending itself on four separate legal and regulatory fronts. The Action Behavior Centers lawsuits and enforcement actions include a personal-injury case in Texas, a Texas licensing action after a child abuse report at a Fort Bend County clinic, a Medicaid contract fight in Arizona affecting hundreds of children, and a Medicaid rate-cut challenge in North Carolina where ABC is a central provider. None of these cases has produced a final judgment against the company, but together they show a business under sustained legal pressure.
The Texas Personal Injury Case
Latosha Spates sued Action Behavior Centers, LLC, AB Centers Acquisition Corporation, and AB Centers Holdings, LLC on July 28, 2022, in the 353rd District Court of Travis County, Texas.1Trellis.law. Latosha Spates vs Action Behavior Centers LLC et al The court categorized the matter as a personal-injury tort claim. The public docket does not describe the specific allegations.
The case is still open. The parties filed an agreed motion for continuance in March 2025, and the defendants moved for summary judgment in July 2025. In September 2025 the court appointed a guardian ad litem for a minor plaintiff, and in December 2025 the plaintiff filed a motion to seal minor settlement filings, which suggests the parties may be working toward a resolution involving a child.2Docket Alarm. Spates vs. Action Behavior Centers docket No trial date or final disposition has been recorded.
Fort Bend County Abuse Report and License Suspensions
On July 17, 2025, the mother of a four-year-old child reported that a behavior technician at an ABC clinic in Fort Bend County, Texas, had sexually abused her child during a therapy session.3Texas Department of Licensing and Regulation. TDLR Suspends Two Behavior Analyst Licenses The clinic placed the technician on a two-week administrative leave. Texas regulators concluded that his supervisors failed to report the allegation to law enforcement as required by the Texas Family Code.
On August 19, 2025, the Texas Department of Licensing and Regulation issued emergency orders suspending the behavior-analyst licenses of supervisors Brittany Darden-Gonzales and Carina Pinto for a minimum of two years. TDLR noted that the accused technician’s job title is not licensed or regulated by the state, so the agency was “unable to enforce any order against the employee in question.”3Texas Department of Licensing and Regulation. TDLR Suspends Two Behavior Analyst Licenses No criminal charges had been filed as of the August reporting.4ABC13. Texas Suspends Two Fort Bend Behavior Analysts for Failing to Report Child Sexual Abuse
Action Behavior Centers said publicly that its team “followed due process and reported the matter to child protective services, who conducted their own review and closed the case,” and that its internal investigation “did not substantiate any claims.”4ABC13. Texas Suspends Two Fort Bend Behavior Analysts for Failing to Report Child Sexual Abuse TDLR did not take regulatory action against the company itself.
The Arizona Medicaid Contract Fight
The Arizona dispute is the largest in scope. Mercy Care, one of Arizona’s Medicaid managed-care organizations, imposed a 15% ABA reimbursement cut in July 2025 and demanded another 25% cut in September. When providers pushed back, Mercy Care moved to terminate contracts with three of the state’s largest ABA chains: Centria Autism, Action Behavior Centers, and Hopebridge.5Behavioral Health Business. Centria Sues MCO, State Agencies Over Medicaid Network Elimination Arizona Complete Health separately terminated its contract with ABC.6AZ Capitol Times. Second Lawsuit Filed Against AHCCCS Over Autism Therapy Contract Dispute
Two lawsuits followed in Maricopa County Superior Court. On December 15, 2025, Centria Autism and two parents sued AHCCCS, Mercy Care, and the Department of Economic Security, challenging the terminations and alleging harm to roughly 700 children.5Behavioral Health Business. Centria Sues MCO, State Agencies Over Medicaid Network Elimination On February 6, 2026, eleven families filed a class-action complaint against AHCCCS invoking the federal Medicaid Act, the Americans with Disabilities Act, and the Arizona Constitution, and seeking class status covering an estimated 1,000 children.6AZ Capitol Times. Second Lawsuit Filed Against AHCCCS Over Autism Therapy Contract Dispute
ABC is not the named plaintiff in either case, but its patients are directly affected. According to an AHCCCS court filing, only 37 of 300 ABC clients on the Mercy Care plan had successfully transitioned to new providers before the March 2026 termination deadline. Parents reported regression, self-injury, and anxiety in children forced to change therapists.7Arizona Mirror. Arizona Families Say AHCCCS Left Autistic Children Stranded Without Therapy Options
AHCCCS argued the fight is between private insurers and providers, not the state, and said Mercy Care’s remaining network had sufficient openings. In a January 2026 filing, the agency called families’ concerns “emotionally charged preferences” that “do not rise to the level of irreparable injury.”8AZ Law Now. AHCCCS ABA Contract Crisis: 1,000 Children Mercy Care called its decision “thoughtful and in alignment with our responsibility to members and network standards.” As of early March 2026, a ruling on the families’ request for an injunction was still pending.9AZ Family. Nearly 1K Arizona Children With Autism Lose ABA Therapy Coverage
North Carolina Medicaid Rate-Cut Litigation
In October 2025, the North Carolina Department of Health and Human Services cut Medicaid reimbursement for ABA therapy by 10%. Parents of more than 20 children with autism sued, arguing the cuts amounted to disability discrimination under state law and the North Carolina Constitution.10Carolina Journal. M.Q. et al. v. NC DHHS et al., Complaint
ABC is not a defendant, but it is woven through the case. Plaintiff M.Q. was on a waitlist at ABC’s Wake Forest, North Carolina, clinic, and the company told the court that the rate cuts had forced it to cancel plans for a new clinic because accepting Medicaid patients at the reduced rates was financially unsustainable.10Carolina Journal. M.Q. et al. v. NC DHHS et al., Complaint In November 2025, Wake County Superior Court Judge Clayton Somers granted a preliminary injunction ordering the state to restore reimbursement rates to their pre-October levels, finding that the cuts threatened to push providers out of the Medicaid program during a “critical developmental window” for the affected children.11NCCDD. NC Moves to Rein In Soaring Autism Therapy Costs Amid Fraud Concerns
Why ABC Keeps Ending Up in Court
The pattern is not unique to ABC. Between 2017 and 2022, private-equity firms accounted for 85% of all mergers and acquisitions in the autism-services sector, according to the Center for Economic and Policy Research.12CEPR. Pocketing Money Meant for Kids: Private Equity in Autism Services13Becker’s Behavioral Health. Private Equity Firm to Acquire Action Behavior Centers, Valued at $840M14Acuity News. ABA’s Power Players: The 10 Largest Providers Reshaping Autism Care
With Medicaid spending on ABA now above $2 billion annually, states have responded with rate cuts, service caps, and audits. ABC’s chief marketing officer called Arizona’s rates “clinically and operationally unsustainable,” and the company faces further Medicaid rate pressure in Indiana, where reimbursement for key billing codes is set to drop by 2027.15CT Acquisitions. ABA Therapy PE Rollup Tracker 2026 The Texas personal-injury case is still pending, the Arizona injunction request awaits a ruling, and the North Carolina injunction holds only for now.