The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failed to disclose that: (i) Corrections Corporation'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) Corrections Corporation's rehabilitative services for inmates were less effective than those provided by BOP; (iii) the U.S. Department of Justice ("DOJ") was unlikely to renew and/or extend its contracts with the Company; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
Specifically, on August 18, 2016, Deputy Attorney General Sally Yates announced the DOJ's decision to end its use of private prisons, after officials concluded that the facilities are both less safe and effective at providing correctional services than those run by the federal government.
After this announcement, Corrections Corporation's share price fell from $27.22 per share on August 17, 2016 to a closing price of $17.57 on August 18, 2016—a $9.65 or a 35.45% drop.
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If you invested in Corrections Corporation common stock or options between February 27, 2012 and August 17, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/CXW. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Corrections Corporation's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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