Suit filed over CEO defection

Thursday, July 22, 1999 | 10:53 a.m.

Charter Behavioral Health Systems sued the former chief executive of its Las Vegas hospital, accusing him of scheming to recruit key Charter employees to a rival hospital.

The lawsuit, filed in state court, also names Behavioral Health Corp., operator of Montevista Hospital of Las Vegas, as a defendant. Alan Chapman, former CEO of Charter-Las Vegas, is now the CEO of Montevista.

In March Chapman accepted an offer to become CEO of Montevista, but set a condition that Montevista would have to employ certain key Charter employees, Charter alleged. In April and May, Chapman held repeated staff meetings where he ridiculed Charter and tried to convince employees to quit to join Montevista, the lawsuit states.

Shortly after Chapman resigned in May, five Charter executives quit to join Montevista, Charter claims.

The defendant could not be reached for comment.

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