NEW ORLEANS — Post Acute Medical (PAM) has filed a federal lawsuit against two former executives of its Covington rehabilitation hospital, alleging they violated employment agreements, recruited employees for a competing healthcare venture and improperly retained confidential company information after leaving the organization.
The complaint, filed in U.S. District Court for the Eastern District of Louisiana, names former PAM Health Specialty and Rehabilitation Hospital of Covington Chief Executive Officer Timothy Burke and former Chief Nursing Officer Candece Beall as defendants.
PAM seeks injunctive relief and damages, alleging breaches of contract, trade secret violations, unfair trade practices, breach of fiduciary duty, conversion and violations of federal computer fraud laws.
According to the lawsuit, Burke resigned from PAM on March 30, and subsequently joined a venture connected to BMA LTAC, which plans to open a post-acute hospital in Hammond under the name Serenity Oaks. PAM alleges that while still serving as CEO, Burke actively recruited members of the hospital’s senior leadership team to join the competing operation.
The complaint alleges that between March 17 and March 24, Burke arranged a meeting at a former rehabilitation hospital building in Hammond that included several members of PAM Hospital’s leadership team, Beall, representatives of Serenity Oaks, and an attorney identified in the lawsuit as the registered agent for the new venture.
PAM claims Burke introduced the assembled executives as the “team” he wanted to bring with him to Serenity Oaks and that discussions included potential business relationships with vendors already working with PAM facilities.
PAM contends Burke was bound by confidentiality and non-solicitation obligations contained in his employment agreement.
While the company states it does not intend to enforce Burke’s non-compete provision, it alleges he violated other contractual obligations by recruiting executives and staff members to join Serenity Oaks before and after his departure from PAM.
The lawsuit identifies several alleged recruiting efforts, including attempts to persuade employees to leave PAM for positions with Serenity Oaks.
PAM further claims Burke advised employees to be “careful” about discussions concerning recruitment because of restrictions contained in his employment agreement.
Beall resigned from PAM on April 27, 2026, and accepted a position as chief nursing officer for Serenity Oaks, according to the complaint.
PAM alleges that by accepting employment with a competing facility in a restricted geographic area and within the timeframe specified in her agreement, Beall violated the non-compete provisions she signed as a condition of employment.
The company also alleges she recruited nursing staff for future employment opportunities with Serenity Oaks while still employed by PAM.
The complaint additionally accuses both defendants of mishandling confidential and proprietary company information.
PAM alleges Burke downloaded company documents and transmitted information to a personal email account around the time of his resignation.
The company further claims he later sought proprietary information concerning physician credentialing procedures from a member of the hospital’s leadership team.
Regarding Beall, PAM states that an internal review of her access history revealed multiple instances in which she allegedly emailed confidential company information to a personal email account before leaving the organization.
The lawsuit specifically references a Feb. 27 transmission of approximately 60 megabytes of data that allegedly included staffing calculations and nursing-hours-per-patient-day information, which PAM characterizes as proprietary business data.
The company alleges both former executives exceeded authorized access to PAM’s online resources and improperly retained confidential information after their departures.
PAM claims the information constitutes trade secrets and proprietary business information that derives economic value from not being publicly known.
In addition to breach-of-contract claims, PAM accuses Burke of breaching fiduciary duties owed to the company while serving as chief executive officer.
The lawsuit alleges he competed against PAM, solicited employees for a rival venture, and advanced the interests of Serenity Oaks while still employed by PAM.
The complaint further alleges violations of the Louisiana Unfair Trade Practices Act, the Louisiana Uniform Trade Secrets Act, the federal Defend Trade Secrets Act, the Computer Fraud and Abuse Act, and Louisiana conversion law.
PAM asserts that the defendants’ conduct has caused or will cause lost business opportunities, increased expenses, reputational harm, competitive harm and costs associated with investigation and remediation efforts.
As part of the lawsuit, PAM is seeking preliminary and permanent injunctions that would prohibit Burke and Beall from using or disclosing confidential information, require the return of company information allegedly in their possession, prevent Beall from working for Serenity Oaks during the term of her non-compete agreement and bar both defendants from soliciting PAM employees for competing organizations.
The company also seeks compensatory damages, punitive damages, attorney fees, court costs and other relief. The company is represented by William K. Wright IV and Lauren L. Tafaro of Adams & Reese.
U.S. District Court for the Eastern District of Louisiana case number: 2:26-cv-01275
