Class Action Lawsuit Filed Against Peachtree Corners Treatment Center

Peachtree Corners-based Narconon of Georgia is being sued by seven individuals accusing the company of fraud and breach of contract.

On behalf of the plaintiffs, Atlanta attorneys Harris Penn Lowery filed the class action lawsuit in Gwinnett County on June 4.

Although Narconon states that it is drug rehabilitation, drug education and drug prevention program, the plaintiffs believe otherwise.

Among other things, the plaintiffs allege that the Narconon misrepresented its validity, success rate, staff licensing and safety of housing: That's despite $10,000 - $50,000 per person in enrollment fees.

In addition, the lawsuit claims that Narconon fraudulently opened credit cards in the name of patients (or families) to finance the operation.

There are a total of 10 counts, or allegations, listed in the lawsuit:

Fraud, or misrepresentation, breach of contract, unjust enrichment, detrimental reliance, negligence per se, and several racketeering charges: theft by deception, mail and wire fraud, false statements to a government agency, credit card fraud, and identity fraud.

Plaintiffs are seeking restitution of all monies paid to Narconon, and actual, general, and punitive damages to be determined by the court.

In a statement to WSB-TV, Narconon officials said yesterday that:

"The lawsuit has not been served.  However, from what we understand, this case lacks merit and is simply an attempt to obtain money from a nonprofit dedicated to helping address this nation’s drug epidemic."

Recently, insurance fraud investigators executed search warrants on the Peachtree Corners business, and seized computers, hard drives, and financial and medical records, according to WSB-TV.

WSB-TV also reports that those officials are now working with Gwinnett County's district attorney's office to determine of criminal charges will be filed. 

Read the entire class action lawsuit by clicking here. If you think you have been aggrieved, contact Harris Penn Lowery.

See also:

• License for Peachtree Corners Treatment Center in Jeopardy
• Former Narconon Employee Found Dead in Technology Park Laid to Rest

Click here to subscribe to the free daily Peachtree Corners Patch newsletter.