NEW YORK, Aug. 24, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed in the United States District Court, Middle District of Tennessee, against Corrections Corporation of America ("Corrections Corporation" or the "Company") (NYSE: CXW) and certain of its officers. The class action is on behalf of a class consisting of all persons or entities who purchased Corrections Corporation securities between February 27, 2012 and August 17, 2016, inclusive (the "Class Period").
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
Corrections Corporation, founded in Nashville Tennessee, owns, operates and manages private correctional and detention facilities in the United States. The company also provides inmate residential and prisoner transportation services for governmental agencies.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding Corrections Corporation's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) 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; (2) Corrections Corporation's rehabilitative services for inmates were less effective than those provided by BOP; (3) consequently, the U.S. Department of Justice ("DOJ") was unlikely to renew and/or extend its contracts with Corrections Corporation; and (4) therefore, Corrections Corporation's public statements were materially false and misleading at all relevant times.
On August 18, 2016, the Justice Department publicized its plan to terminate its use of private prisons after officials established that private prisons are less safe and less successful in delivering correctional services compared to prisons government run. Corrections Corporation of America is one of three contracted prisons. Following this news Corrections Corporation stock dropped $9.65 per share or over 35% to close at $17.57 on August 18, 2016.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/cxw or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email [email protected]. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Corrections Corporation you have until October 24, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC