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. Case No. 666 Broadway In 2014 and 2015 reports, CCA said, We are committed to equipping offenders in our care with the services, support, and resources necessary to return the community as productive, contributing members of society., The facade fell off on August 18, 2016, when Deputy General Attorney Sally Yates announced the Department of Justice had decided to end its use of private prisons. 3:16-cv-02267. Wedbush Cuts Price Target on CoreCivic to $15 From $17, Citing Cash Flow Forecasts, Kee.. Wells Fargo Upgrades CoreCivic to Outperform from Neutral, Sets $17 Price Target. Please read this entire Notice carefully. Families, South Carolina Fails to Evacuate Prisoners Threatened by Hurricane, New York Sheriff Loses Lawsuit, Must Report Serious Prisoner Incidents to State Agency, South Carolina: Two Women Drown in Sheriffs Transport Van, Deputies Charged, New Mexico Riot Raises Questions About Private Prison Companys Competence, New Indianapolis Jail Will Not be Run by a Private Prison Company, but is Being Built on Contaminated Land, GEO Group Produces Litigation Documents After HRDC Files Public Records Suit, Imagine Pleading Guilty Because You Cant Afford to Call Your Lawyer, Canada: Long-Term Segregation of Mentally Ill Prisoners Unconstitutional; $20 Million in Damages, Federal Court Rules in Favor of HRDC in Virginia Jail Censorship Suit, Settlement Reached in Suit Over Failure to Keep Released L.A. County Prisoners from Becoming Homeless, I Had Nothing: How Parole Perpetuates a Cycle of Incarceration and Instability, Sixth Circuit Rules Suit May Proceed Where State Judge Offered Reduced Sentences for Sterilization, The Second Step: Invest in Prison Education Programs, Reinstate Pell Grants, Virginia Supreme Court Upholds Derivative Sovereign Immunity for Jail Physician, Fifth Circuit: No Qualified Immunity for Mississippi Sheriffs in Suit Over Mentally Ill Mans Years-long Unlawful Detention, Federal Judge Refuses to Shorten Corruption Sentence for Former Head of New York City Jail Guards Union, Fifth Circuit Denies Qualified Immunity to Mississippi Cops Who Let Injured Hemophiliac Bleed Out in Jail, Sixth Circuit: Unarmed Bank Robber Who Ordered Tellers to Get on the Floor Not Subject to Enhancement for Physical Restraint, Music Stops in Fifth Circuits Qualified Immunity Dance, Leaving Plaintiffs With Shortened Discovery Period, Fifth Circuit Holds PLRAs Three-Strikes Provision Does Not Apply to Actions Removed From State Court, Plainly Grossly Inadequate: Federal Court Finds Arizona Prison Healthcare Deliberately Indifferent to Prisoners Risk of Serious Harm, Eighth Circuit Says Judge Dismissing Claim of Federal Prisoner in Arkansas Was Premature in Counting It a PLRA Strike, After Federal Judge Censors Lawyers Tweets About CoreCivic, Company Settles Suit Over Tennessee Prisoners Murder by Cellmate, Class Certified in Orange Crush Shakedown Lawsuit by Illinois Prisoners, ICE Ignores Inspector Generals Call for Immediate Removal of Migrant Detainees from CoreCivic New Mexico Detention Facility, CoreCivic Workers Unionize and Go On Strike at Arizona Prison, Arizona Closing Prison, Moving Prisoners to CoreCivic Lockup, GED Cheating Scheme Uncovered at Montana CoreCivic Prison, Class of Juvenile Prisoners Certified in Suit Against Florida DOC, Federal Judge Allows Wiretapping Case to Proceed Against CoreCivic for Recording Attorney-Client Conversations at Nevada Prison, $405,000 Paid to Prisoner Disabled and Left Untreated at LaSalle-Managed Louisiana Jails, U.S.D.C. [See: PLN, Oct. 2018, p.30; Oct. 2016, p.22]. 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. Private prison operator CoreCivic, formerly known as Corrections Corporation of America (CCA), paid $56 million to settle a class action lawsuit alleging it violated securities laws that resulted in a loss to stock holders. In the lawsuit, plaintiffs alleged that the unconscionable arrangements violated their constitutional rights to speech and association, their rights to foster and maintain family relations under the First and Fourteenth Amendments; their rights to due process and equal protection of law under the Fifth and Fourteenth Amendments; and their right to unimpaired freedom of contract under Article 1, Section 10. Delayed Nyse The FCC sought comments on petitioners alternative proposal in the spring of 2007, and supportive comments were filed with the FCC by many organizations, including the Ad Hoc Coalition for the Right to Communicate and the Sentencing Project. Seamus Kaskela, Esq.Adrienne O. Private prisons do not save substantially on costs; and as noted in a recent report by the Departments Office of Inspector General, they do not maintain the same level of safety and security.. In some instances CoreCivic pays detainees $1 per day, and in other instances detainees are not compensated with wages at all for their labor and services, the lawsuit claims, adding that the defendant reported nearly $1.8 billion in total revenues from 2016. What Is This Lawsuit About? Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. 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"). The Class Representative alleges that defendants engaged in a scheme to defraud and made numerous materially false and misleading statements and omissions to investors regarding CCAs business and operations, including by falsely stating that: (i) the outsourcing of correctional services to CCA resulted in improving correctional services for government agencies, including the BOP; (ii) CCAs facilities were operated in accordance with applicable policies, procedures and contractual requirements; (iii) CCAs renewal rate on contracts was and would remain high because of the quality of services it provided to government customers; and (iv) the outsourcing of correctional services to CCA resulted in significant costs savings for government agencies, including the BOP. For more information, visit Batteas Corrections Corporation of America case summary. CoreCivic, Inc., formerly known as Corrections Corporation of America, is the defendant in a 36-page proposed class action lawsuit alleging the company operates its detention facilities in violation of state and federal human trafficking and labor laws. The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the. Following this news, shares of the Company's stock declined $9.65 per share, or over 35%, to close on August 18, 2016 at $17.57 per share, on unusually heavy trading volume. February 6, 2023. The plaintiffs also alleged that the agreements violated the Sherman Anti-Trust Act, 15 U.S.C. Share Shareholders who have incurred losses in Corrections Corporation of America securities are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774.. the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. submit will be maintained as confidential. Each of these contracts is subject to review by federal officials, but experts generally expect that few if any will be renewed. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible. YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT, , Civil Action No. CoreCivics defense was that an August 11, 2016 report by the Department of Justices Office of the Inspector General (OIG) laid bare the problems in privately-operated federal prisons. Lawsuit Filed, Settlement Proposed, Settlement Approved. Wedbush Upgrades CoreCivic to Outperform From Neutral, Adds Stock to Best Ideas List, A.. Donations: 212-614-6448 from 8 AM - 9 PM ET. The civil complaint cited statements made in Annual Reports CCA filed with the Securities and Exchange Commission. 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. Bell, Esq.280 King of Prussia RoadRadnor, PA 19087(888) 299 - 7706(610) 667 - 7706[emailprotected], SOURCE Kessler Topaz Meltzer & Check, LLP, Cision Distribution 888-776-0942 This settlement will help ensure they dont lose money betting on the business of caging people for profit. D. Seamus Kaskela, Esq. On April 15, 2021, the Settling Parties accepted the mediators proposal to resolve the Litigation, and on May 19, 2021, executed a Settlement Agreement memorializing their agreement. A 2012 report noted that 40-43% of CCAs revenue was derived from contracts with the federal government through operation of prisons and detention centers. Provides Earnings Guidance for the Year 2023, CoreCivic, Inc. Reports Earnings Results for the Fourth Quarter Ended December 31, 2022, CoreCivic, Inc. Reports Earnings Results for the Full Year Ended December 31, 2022, CoreCivic Announces 2022 Fourth Quarter Earnings Release and Conference Call Dates, CoreCivic to Redeem 4.625% Senior Notes Due 2023. The petition sought restructuring of long distance inmate calling services to introduce competition. Check, Esq. 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. Corrado Rizzi is the Senior Managing Editor of ClassAction.org. 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. District Judge Gladys Kessler acknowledged the civil rights concerns, but referred the case to the Federal Communications Commission, under the doctrine of primary jurisdiction. CCA also boasted that, as of December 10, 2010, the American Correctional Association (ACA), an independent organization of corrections industry professionals that establishes standards by which a correctional facility may gain accreditation, had accredited 85% of its facilities. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com. Bell, Esq.) 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. Delayed Nyse The Stipulation (together with the Exhibits thereto) reflects the final and binding agreement between the Settling Parties. Provides Earnings Guidance for the Year 2023, CoreCivic, Inc. Reports Earnings Results for the Fourth Quarter Ended December 31, 2022, CoreCivic, Inc. Reports Earnings Results for the Full Year Ended December 31, 2022, CoreCivic Announces 2022 Fourth Quarter Earnings Release and Conference Call Dates, CoreCivic to Redeem 4.625% Senior Notes Due 2023. These exclusive dealing agreements allow defendants to use their control over a captive audience to unjustly enrich themselves. Check, Esq.D. You will not be charged for these lawyers. As detailed in the complaint, on August 18, 2016, Deputy Attorney General Sally Yates announced the DOJ's decision to end its use of private prisons, including those operated by CCA, after officials concluded that the facilities are both less safe and less effective at providing correctional services than those run by the federal government. That included the likely discontinuation of its reliance upon private companies to run its facilities, as part of an effort to enact reforms that would ensure more proportional sentences and effective use of federal resources.. No settlement was reached however, and on October 31, 2003, CCR filed a petition for rulemaking with the FCC. A trial is scheduled for May 18, 2021. Corrections Corporation of America/CoreCivic, Rural Prisons . We recommend that you read the Notice and other relevant case documents carefully. This Notice explains the class action lawsuit, the Settlement, Class Members' legal rights in connection with the Settlement, what benefits are available, who is eligible for them, and how to get them. Kessler Topaz Meltzer & Check, LLP Notice of Proposed Settlement of Class Action. Goldberg Law PC announces that a class action lawsuit has been filed against Corrections Corporation of America .. | February 6, 2023. LEXIS 50444. CCR and its partners filed an alternative rulemaking proposal requesting that the FCC establish benchmark rates for all interstate inmate calling services no higher than $0.20 per minute for debit calling and $0.25 per minute for collect calling. The complaint in this action was not filed by Kessler Topaz Meltzer & Check. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). On August 23, 2016, an action captioned , Grae v. Corrections Corporation of America, et al. Tenn.), Case No. Filed: May 31, 2017 3:17-cv-01112-JLS-NLS. On May 26, 2019, the Court certified the Class consisting of all persons who purchased or otherwise acquired Corrections Corporation of America. Radnor, PA 19087 | February 7, 2023 Advanced search Log in Forgot password ? The case claims punishments for non-compliant detainees could range from physical restraint to sustained restriction, deprivation, and violation of their liberty, and solitary confinement.. CCR filed a petition for rulemaking with the FCC. As more fully described in the Notice of Proposed Settlement of Class Action(the "Notice"), the initial complaint in this action was filed on August 23, 2016. The Settlement Amount and any interest it earns constitute the Settlement Fund. The Settlement Fund, after deduction of Court-approved attorneys fees and expenses, Notice and Administration Expenses, Taxes, and any other fees or expenses approved by the Court, is the Net Settlement Fund. If the Settlement is approved by the Court, the Net Settlement Fund will be distributed to eligible Authorized Claimantsi.e., Members of the Class who timely submit valid Proofs of Claim and Releasein accordance with the proposed Plan of Allocation. The class specifically excluded CCA and CoreCivic officers named as defendants. All rights reserved. CoreCivic, Inc. Reports Impairment of Real Estate Assets for the Fourth Quarter Ended D.. CoreCivic, Inc. Are you a current or former employee of Corrections Corporation of America (2016)? Status. Kessler Topaz Meltzer & Check, LLPDarren J. As detailed in the complaint, on August 18, 2016, Deputy Attorney General Sally Yates announced the DOJ's decision to end its use of private prisons, including those operated by CCA, after officials concluded that the facilities are both less safe and less effective at providing correctional services than those run by the federal government. At issue were allegedly materially false and misleading statements issued during the class period. 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. 3:16-cv-02267, was filed in the District Court. We believe that this percentage compares favorably to the percentage of government-operated adult prisons that are accredited by the ACA, the report stated. You will still be a Member of the Class. Defendants deny each and all of Plaintiffs allegations. of Phillips ADR, an experienced mediator. The Settlement, if approved, will result in the creation of a cash settlement fund of $56,000,000.00 (the Settlement Amount). 3:16-cv-02267, has been certified by the District Court as a class action; and Amalgamated Bank, as Trustee for . Sections 151 et seq., and other laws of the District of Columbia. Tranche Update on CoreCivic, Inc.'s Equity Buyback Plan announced on May 16, 2022. https://www.ktmc.com/new-cases/corrections-corporation-of-america#join, CoreCivic Reports Fourth Quarter and Full Year 2022 Financial Results. Kessler Topaz Meltzer & Check, LLPDarren J. They simply do not provide the same level of correctional services, programs, and resources, Yates said in making the announcement. 2009 the U.S. District Court for the District of Kansas unsealed a $7 million settlement agreement in a nationwide class-action wage and hour lawsuit against CCA. The outlook for CoreCivic and the private prison industry took a hit with the Biden administration in the White House. at (888) 299 7706 or at [emailprotected]. Wedbush Cuts Price Target on CoreCivic to $15 From $17, Citing Cash Flow Forecasts, Kee.. Wells Fargo Upgrades CoreCivic to Outperform from Neutral, Sets $17 Price Target. Corrections Corporation of America, a nationwide class action lawsuit, seeking to enjoin, declare illegal, and recoup damages resulting from conspiracies between CCA and various telephone companies, including Evercom, Inc., MCI-Worldcom, Pioneer Telephone Corporation, AT&T, and Global Telecommunications Link, Inc. CCA operates 82 prisons and Receive no payment. CoreCivic and its executives, as might be expected, typically portrayed its services in a positive light to shareholders, the district court wrote. 08/23/2016. By Aug. 1, it was down to a little more than $32.50, then the downturn started picking up more speed. Copyright 2023 Surperformance. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com. For more information on this case or other class action litigations, please contact Adam Foulke at 203-987-4949 or info@battea.com. CCA entered into a series of exclusive agreements with telephone companies to provide inmate telephone service at various CCA-run prisons and jails. 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. Tenn.) (the "Litigation"), you must complete and, on Filed Date: April 27, 2011 Closed Date: May 23, 2016 Clearinghouse coding complete . Date Filed. CCA specifically listed the ACA, The Joint Commission, the National Commission on Correctional Healthcare, the Occupational Safety and Health Administration, federal, starts, and local government codes and regulations, established correctional procedures, and company-wide policies and procedures that may exceed those guidelines that it met or exceeded. If you want to be represented by your own lawyer, you may hire one at your own expense. 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. Shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. The Settling Parties engaged in arms-length negotiations during the mediation session, but were unable to reach an agreement. Read our Newswire Disclaimer. Bell, Esq. The world's largest private prison company. The precipitous decline in the market value caused the class to suffer significant losses and damages., CoreCivic President and CEO Damon Hininger said the company was glad to put the litigation behind itself. Judge Trauger found there was a strong case to be made that CoreCivic got off easy with respect to the OIG report. Darren J. 27, 2012 and August 17, 2016, inclusive (the "Class Period"). -, Transcript : CoreCivic, Inc., Q4 2022 Earnings Call, Feb 09, 2023, CoreCivic's Q4 Adjusted Earnings, Revenue Decline. New York, NY 10012, Main: 212-614-6464 (888) 299-7706 . The complaint in this action was not filed by Kessler Topaz Meltzer & Check. 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. Expert depositions are scheduled to conclude on October 30, 2020. Buckfire Law Wins Jail Death Trial Against Corizon Health's Employees Dec, 16 2022 Private prison company execs accused of downplaying detainee lawsuits Aug 26, 2022 Tenth Circuit Revives Suit Against Colorado Jail Guard in Death of Mentally Disabled Detainee, Nov. 30, 2022. Whether anything actually comes of that remains to be seen. 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. Remember Or log in with Google Twitter Facebook Apple Sign up While Corrections Corporation of America still has a number of contracts with the DOJ that have yet to expire, the decision had a massive negative impact on the companys stock prices, which began reeling more or less immediately after the announcement.
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