Altamont Capital Sued by Sequel Youth Ex-CFO Over Cost-Cutting

A former top executive at Sequel Youth & Family Services LLC sued its private equity acquirer, Altamont Capital Partners, claiming cost-cutting at the behavioral health company tarnished its brand and “eviscerated” the value of minority investments.

The lawsuit also targets several Altamont principals and former senior leaders at Sequel, a for-profit business that focuses on treatments for at-risk adolescents. It accuses them of damaging a once-thriving company by steering it into bad press and public scrutiny, including congressional hearings about alleged exploitation and mistreatment at its facilities.

Sequel “apparently reduced investments back into the business following the Altamont transaction,” ...