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Corrections Corp Of America (NYSE:CXW) Investor Securities Class Action Lawsuit 08/23/2016

  • If you purchased shares of Corrections Corp Of America (NYSE:CXW), you may have certain options. Please contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Corrections Corp Of America
Security
NYSE: CXW

Case Name
Corrections Corp Of America Shareholder Class Action Lawsuit 08/23/2016
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Middle District of Tennessee

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Summary

December 18, 2017 - The court denied the defendants' motion to dismiss.

May 12, 2017 - A motion to dismiss the amended complaint was filed.

March 13, 2017 - An amended complaint was filed.

August 23, 2016 (Shareholders Foundation) - An investor in shares of Corrections Corp Of America (NYSE:CXW) filed a lawsuit in the U.S. District Court for the Middle District of Tennessee over alleged violations of Federal Securities Laws by Corrections Corp Of America in connection with certain allegedly false and misleading statements made between February 27, 2012 and August 17, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Corrections Corp Of America (NYSE:CXW) common shares between February 27, 2012 and August 17, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 27, 2012 and August 17, 2016 Corrections Corp Of America made false and/or misleading statements and/or failed to disclose, that Corrections Corp Of America’s facilities lacked adequate safety and security standards and were less efficient at offering correctional services than the Federal Bureau of Prisons’ (“BOP”) facilities, that Corrections Corp Of America’s rehabilitative services for inmates were less effective than the BOP’s services; that the U.S. Department of Justice (“DOJ”) was unlikely to renew and/or extend its contracts with Corrections Corp Of America, and that as a result of the above, Corrections Corp Of America’s public statements were materially false and misleading at all relevant times.

Corrections Corp Of America reported that its annual Total Revenue rose from over $1.64 billion in 2014 to over $1.79 billion in 2015 and that its respective Net Income increased from $195.02 million to $221.85 million.

On August 18, 2016, the Justice Department announced its plans to end its use of private prisons after officials concluded that such facilities are both less safe and less effective at providing correctional services than those run by the government. The contract prisons are operated by three private corporations, including Corrections Corporation of America.

Shares of Corrections Corp Of America (NYSE:CXW) declined from $27.38 per share to $13.04 per share on August 18, 2016.