In 1976 the Academy, along with the Saint James School, was named in a suit filed against United States Secretary of the Treasury William Simon and Commissioner of Internal Revenue Donald C. Alexander by five women from Montgomery charging that the two men had encouraged the development of segregated schools by allowing them tax-deductible status. The school was identified as a discriminatory institution by the plaintiffs in "Allen v. Wright", a lawsuit by black parents that was decided in 1984 by the U.S. Supreme Court.