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CoreCivic to settle investor lawsuit for $56M
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CoreCivic to settle shareholders lawsuit for $56 million
by Travis Loller, The Associated Press
Posted Apr 19, 2021 12:13 pm EDT
Last Updated Apr 19, 2021 at 12:14 pm EDT
NASHVILLE CoreCivic says it will pay $56 million to settle a lawsuit by shareholders who accused the private prison operator of inflating its stock prices by misrepresenting the quality and value of its services.
The lawsuit was filed in 2016, when CoreCivic’s stock fell after the U.S. Department of Justice directed the Bureau of Prisons to phase out contracts with private operators. The DOJ memorandum said privately run prisons have more safety and security problems than federally run prisons without significant cost savings. The class action was led by Amalgamated Bank, which said it lost $1.2 million when stock prices fell.
CoreCivic to settle shareholders lawsuit for $56 million
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