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CoreCivic to settle shareholders lawsuit for $56 million

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NASHVILLE, Tenn. – 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 CoreCivic pointed out in court filings that the DOJ directive was rescinded under the Trump

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United States
Cases: 46 252 513
Deaths: 750 423
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India
India
Cases: 34 321 025
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Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
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Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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