At its core, the lawsuit takes issue with the entire for-profit detention system into which many undocumented immigrants are thrown into to face removal proceedings. In reaching this conclusion, U.S. District Court Judge Aleta A. Trauger quoted emails in which CoreCivic executives expressed concerns about the pending report, then surprise and pleasure that it did not dwell on some of the more serious deficiencies at private prisons such as continuous understaffing and was directed more at problems with the BOPs oversight role. Donations: 212-614-6448 Its alleged that because the company did not reveal these issues to investors, it materially misled them and caused significant financial harm when the stock price dropped sharply. of Phillips ADR, an experienced mediator. Corrections Corp Of America (NYSE:CXW) Investor Securities Class Action Lawsuit 08/23/2016. Copyright 2023 Surperformance. They simply do not provide the same level of correctional services, programs, and resources, Yates said in making the announcement. The lawsuit was filed August 23, 2016, on behalf of the class of stock holders of CoreCivic, which trades on the New York Stock Exchange under the ticker symbol CXW. The class consisted of persons who held CCA stock between February 27, 2012 and August 17, 2016. Camp Lejeune residents now have the opportunity to claim compensation for harm suffered from contaminated water. The suit, brought under the Fair Labor Standards Act, alleged that CCA had . Advanced search Log in. Frank Krogh, Doane Kiechel, and Jennifer Kostyu, Morrison & Forester LLP, Deborah Golden, D.C. Prisoners Project,Stephen Seliger and Laurie Elkin, Seliger & Elkin Ltd. Additional sources: usnews.com, tennessean.com. Bell, Esq.) Check, Esq., D. Seamus Kaskela, Esq. Your rights may be affected by the Settlement if you purchased or otherwise acquired Corrections Corporation of America, Inc. (CCA or the Company) (n/k/a CoreCivic) during the period from February 27, 2012 through and including August 17, 2016 (the Class Period). Ordering the federal officials to not renew private prison contracts was one of the first acts President Biden made upon taking office. Investors who purchased CCA securities during the Class Period may seek to be appointed by the Court as a lead plaintiff representative of the class. Notice of Proposed Settlement of Class Action. A shareholder class-action lawsuit was filed Wednesday against Corrections Corporation of America, a private prison company that was the subject of a recent Mother Jones investigation. Seamus Kaskela, Esq.Adrienne O. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com. Delayed Nyse The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated June 24, 2021, which can be found and downloaded by clicking on the Case Documents tab above. (484) 270-1453; or via e-mail at info@ktmc.com. The suit was filed in August 2016 against defendants CoreCivic and four of its executives CEO Damon T. Hininger, CFO David M. Garfinkle, Todd J. Mullenger and board member and former federal Bureau of Prisons director Harley G. Lappin. Check, Esq., D. Seamus Kaskela, Esq. Check, Esq. The complaint in this action was not filed by Kessler Topaz Meltzer & Check. Finally, this claim also takes into account the recent decision by the U.S. Department of Justice not to renew or extend its contracts with private corrections companies, which sent Corrections Corporations stock plummeting in mid-August. Below these are specific cases. The class action suit has a class period of between Feb. 27, 2012, and Aug. 17, 2016. The Trump administration reversed course on the end of private prison contracts from the government. or Adrienne O. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com. Read our Newswire Disclaimer. The fact that CoreCivics stock eventually recovered was no defense to its alleged use of false statements and failure to disclose adverse information. Tenn.), Case No. On Aug. 17, the day before the DOJ announcement, Correction Corporation was trading at just $27.22 per share. These exclusive dealing agreements allow defendants to use their control over a captive audience to unjustly enrich themselves. Amalgamated alleged it alone lost $1.2 million when CoreCivics stock price fell sharply after an August 18, 2016 memorandum by then-Deputy U.S. Attorney General Sally Q. Yates directed the federal Bureau of Prisons (BOP) to phase out private prison contracts a directive later reversed by the Trump administration. 3:16-cv-02267, has been certified by the District Court as a class action; and Amalgamated Bank, as Trustee for . The Settlement, if approved, will result in the creation of a cash settlement fund of $56,000,000.00 (the Settlement Amount). CCA, together with its subsidiaries, owns, operates, and manages private prisons and other correctional facilities in the United States, and provides inmate residential and prisoner transportation services for governmental agencies. On August 23, 2016, the initial complaint in this securities class action was filed against Corrections Corporation of America (CCA) and certain of CCAs top officials, asserting violations of sections 10(b) and 20(a) of the Securities Exchange Act. the matter and whether to establish an attorney client relationship. 2. Therefore, class-action status was granted. PLN printISSN: 10757678 |PLN online ISSN: 2577-8803, Corrections Corporation of America/CoreCivic, PREA: Tackling the Nightmare of Prison Rape, Nebraska Supreme Court Holds Discretionary Function Exception Bars Lawsuit Over Prisons Botched Response to Uprising, Arizona Federal Court Rescinds Approval of Jensen Settlement; Sets Class Action Medical and Control Unit Case Against Arizona DOC for Trial, $50,000 Settlement for Denial of Medical Care at Tribal Jail in Montana, Protective Order Issued in Florida Solitary Confinement Lawsuit, Georgia Enacts Massive Probation Reform Bill. Goldberg Law PC announces that a class action lawsuit has been filed against Corrections Corporation of America .. | February 6, 2023 . A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. To recover as a Member of the Class based on your claims in the action entitled Grae v. Corrections Corporation of America, et al., Civil Action No. The lawsuit, filed in August 2016 against the company and four executives, alleges CoreCivic, formerly named Corrections Corp. of America, made false and misleading statements about its. Seamus Kaskela, Esq.Adrienne O. Tenn.) (the "Litigation"), you must complete and, on Prison Staff Are Refusing Vaccines. . Other reports continued the theme of high standards that governed the operation of CCAs federal facilities. The day of the decision, it dropped to just $13.04. As a digital subscriber to Prison Legal News, you can access full text and downloads for this and other premium content. What Is This Lawsuit About? The plaintiffs allege the defendant threatened to punish detainees who refused to engage in tasks that the case claims included cleaning the entire facility, preparing meals for law enforcement events, clerical work, providing barber services, and preparing clothing for new inmates. Forgot password ? submit will be maintained as confidential. CCA, together with its subsidiaries, owns, operates, and manages private prisons and other correctional facilities in the United States, and provides inmate residential and prisoner transportation services for governmental agencies. 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The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the. On August 22, 2001, District Judge Gladys Kessler acknowledged the civil rights concerns but referred the case to the Federal Communications Commission, under the doctrine of primary jurisdiction. For more information on this case or other class action litigations, please contact Adam Foulke at 203-987-4949 or info@battea.com. New York, NY 10012, Main: 212-614-6464 The complaint alleges that CCA and certain of its executive officers made a series of false and misleading statements and/or failed to disclose to investors during the Class Period that: (i) CCA's facilities lacked adequate safety and security standards and were less efficient at offering correctional services than the Federal Bureau of Prisons' ("BOP") facilities; (ii) CCA's rehabilitative services for inmates were less effective than those provided by BOP; (iii) consequently, the U.S. Department of Justice ("DOJ") was unlikely to renew and/or extend its contracts with CCA; and (iv) as a result of the foregoing, CCA's public statements were materially false and misleading at all relevant times.