Newport Academy, a teen mental health and addiction treatment company, closed two Pleasanton facilities after facing state citations for sexual abuse and other violations. The company entered a two-year noncompliance agreement in 2023 but continued to have substantiated incidents.
State officials forwarded cases for legal review in November 2025, but the company had already announced closures. - Sexual abuse of minors by staff at both Arena and Happy Valley facilities.
- Citations included 7 Type A and 8 Type B at Happy Valley, and 4 Type A and 16 Type B at Arena since 2021. - Layoffs of 30 employees at Happy Valley and 16 at Sunol effective April 24, 2026.
The company stated closures were due to market alignment, but state records show ongoing noncompliance.