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. The contract prisons are operated by three private corporations, including Corrections Corporation of America. Tenn.), Case No. 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. Get no payment. You will still be a Member of the Class. The Settling Parties engaged in good faith negotiations, but did not reach a settlement. (M.D. 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. 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 complaint alleges that the Company made false and/or misleading statements and/or failed to disclose: (a) that Corrections . It also provides e-carceration technologies, transportation, and other services as part of the criminal punishment system. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com. Tennessee: Federal Court Grants Class-Action Status in Shareholder Suit In order to be appointed as a lead plaintiff, the Court must determine that the class member?s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Corrections Corporation of America Has Long History of Wage Violations, Poor Treatment of Employees. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). District Judge Gladys Kessler acknowledged the civil rights concerns, but referred the case to the Federal Communications Commission, under the doctrine of primary jurisdiction. The complaint in this action was not filed by Kessler Topaz Meltzer & Check. -, Transcript : CoreCivic, Inc., Q4 2022 Earnings Call, Feb 09, 2023, CoreCivic's Q4 Adjusted Earnings, Revenue Decline. Expert depositions are scheduled to conclude on October 30, 2020. Bell, Esq.) Kessler Topaz Meltzer & Check, LLPDarren J. 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 Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Corrections The day of the decision, it dropped to just $13.04. CoreCivic, Inc., formerly Corrections Corporation of America, is the defendant proposed class action filed over alleged human trafficking and labor law violations. Those statements came as no surprise to PLN readers, for we have regularly reported the deficiencies of services and security in CCA and CoreCivic prisons for over 31 years now. -, Transcript : CoreCivic, Inc., Q4 2022 Earnings Call, Feb 09, 2023, CoreCivic's Q4 Adjusted Earnings, Revenue Decline. 27, 2012 and August 17, 2016, inclusive (the "Class Period"). 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. 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. No settlement was reached however, and on October 31, 2003, CCR filed a petition for rulemaking with the FCC. Shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. The petition sought restructuring of long distance inmate calling services to introduce competition. Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. RADNOR, PA / ACCESSWIRE / August 29, 2016 / The law firm of Kessler Topaz Meltzer & Check, LLP alerts Corrections Corporation of America shareholders that a class action lawsuit has been filed. 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. For more information, visit Battea's Corrections . 3:16-cv-02267; 2019 U.S. Dist. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, https://www.ktmc.com/new-cases/corrections-corporation-of-america#join, Final Deadline Approaching on March 7, 2023: Kessler Topaz Meltzer & Check, LLP Reminds Enovix Corporation Investors of Class Action Lawsuit Deadline, Lead Plaintiff Deadline on March 7, 2023 for Enovix Corporation Investors - Kessler Topaz Meltzer & Check, LLP Reminds Investors of Class Action Lawsuit Filed Against Enovix Corporation. The only way to be eligible to receive a payment from the Settlement. The Settlement, if approved, will result in the creation of a cash settlement fund of $56,000,000.00 (the Settlement Amount). [T]ime has shown the [private prisons] compare poorly to our own Bureau facilities. Ms. Wright was present for the announcement along with other family members of prisoners, advocates and other allies. This browser does not support PDFs. 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. Wedbush Upgrades CoreCivic to Outperform From Neutral, Adds Stock to Best Ideas List, A.. The District Court later appointed Amalgamated Bank, as . Updated. Class Member. 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. 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.. the plaintiffs in the class action lawsuit moved to sever their case from the monetary claims. The district court held that Amalgamated was entitled to the rebuttable presumption that it relied on the companys material public statements when making stock purchases. ClassAction.org is a group of online professionals (designers, developers and writers) with years of experience in the legal industry. 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. The Trump administration reversed course on the end of private prison contracts from the government. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Share 7th Floor For more information on this case or other class action litigations, please contact Adam Foulke at 203-987-4949 or info@battea.com. 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"). 3:16-cv-02267 (the "Litigation"), pending before the United States District Court for the Middle District of Tennessee (the "Court"). CoreCivic shareholders granted class action status in fraud lawsuit Bell, Esq.) 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Incarcerated People Are Paying the Price. See: Grae v. Corrections Corporation of America, USDC, C. Dist. Goldberg Law PC announces that a class action lawsuit has been filed against Corrections Corporation of America .. | February 6, 2023 . CCA shareholders who purchased securities during the Class Period may, no later than October 24, 2016, seek to be appointed as a lead plaintiff of the class. Tenn.) (the "Litigation"), you must complete and, on 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. Wedbush Upgrades CoreCivic to Outperform From Neutral, Adds Stock to Best Ideas List, A.. Senior VP-Federal & Local Customer Relations, Chief Financial Officer & Executive Vice President, Chief Information Officer & VP-Technology, Chief Operating Officer & Executive Vice President. (M.D. The Federal Communications Commission (FCC) finally approves new rules capping prison phone rates, ten years after Martha Wright filed her petition. Seamus Kaskela, Esq.Adrienne O. 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. GENERAL INSTRUCTIONS 1. See: Grae v. Corrections Corporation of America, U.S.D.C. CoreCivic, Inc. Reports Impairment of Real Estate Assets for the Fourth Quarter Ended D.. CoreCivic, Inc. If Kessler Topaz, in its sole discretion, believes that The effect on stock prices These exclusive dealing agreements resulted in the same civil rights violations as have been alleged in CCRs other two prison telephone cases. Whether anything actually comes of that remains to be seen. Following the second in-person mediation, the Settling Parties continued settlement discussions through Mr. Lindstrom and Hon. The law firm of Robbins Geller Rudman & Dowd LLP represents you and other Class Members. 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. 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. On some level it seems as though Wall Street had expected a downturn to come in this regard. (888) 299-7706 Delayed Nyse CCA shareholders may, no later than October 24, 2016, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. Frank Krogh, Doane Kiechel, and Jennifer Kostyu, Morrison & Forester LLP, Deborah Golden, D.C. Prisoners Project,Stephen Seliger and Laurie Elkin, Seliger & Elkin Ltd. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. 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 By Aug. 1, it was down to a little more than $32.50, then the downturn started picking up more speed. 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. CORRECTIONS CORPORATION OF AMERICA, et al., Defendants. ) 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. More specifically, Plaintiff alleges that throughout the Class Period, Defendants engaged in a scheme to defraud and made materially false and misleading statements and/or failed to disclose adverse information regarding the Companys business and operations, which caused the price of the Companys securities to trade at artificially inflated prices, until the circumstances concealed by the alleged fraud were revealed and the Companys securities prices significantly declined. Check, Esq., D. Seamus Kaskela, Esq. The suit was filed in August 2016 against defendants CoreCivic and four of its executives CEO Damon T. Hininger, CFO David M. Garfinkle, Todd J. Mullenger and board member and former federal Bureau of Prisons director Harley G. Lappin. CCA shareholders may, no later than October 24, 2016, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. Community Corrections E-Carceration Class Action Says Bank of America Unlawfully Withholds Cash Rewards Martha Wright v. Corrections Corporation of America For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com. PDF Notice of Proposed Settlement of Class Action America, Inc. ("Cca" or Lawsuits are now being filed on behalf of Elmiron patients who suffered permanent retinal injuries and seek to recover money for physical and mental anguish, medical expenses and more. For two years, CCR participated in a mediation process with defendants and the Special Enforcement unit of the FCC as required. CoreCivic, Inc. Reports Impairment of Real Estate Assets for the Fourth Quarter Ended D.. CoreCivic, Inc. Kessler Topaz Meltzer & Check, LLPDarren J. CCA entered into a series of exclusive agreements with telephone companies to provide inmate telephone service at various CCA-run prisons and jails. Below these are specific cases. Each of these contracts is subject to review by federal officials, but experts generally expect that few if any will be renewed. Civil Action No. Join us on the front lines for social justice! They simply do not provide the same level of correctional services, programs, and resources, Yates said in making the announcement. Lawsuit Claims CoreCivic Allowed Corruption and Gangs to Flourish at We believe that this percentage compares favorably to the percentage of government-operated adult prisons that are accredited by the ACA, the report stated. The Stipulation (together with the Exhibits thereto) reflects the final and binding agreement between the Settling Parties. This was also true for its rehabilitative services in comparison with those provided by the BOP. All rights reserved. YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT, , Civil Action No. Corrections Corp Of America : Class Action Lawsuit Filed Against 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.. Its alleged that because the company did not reveal these issues to investors, it materially misled them and caused significant financial harm when the stock price dropped sharply. Ms. Wright was present for the announcement along with other family members of prisoners, advocates and other allies. 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. Shares of Corrections Corp Of America (NYSE:CXW) declined from $27.38 per share to . Filed Date: April 27, 2011 Closed Date: May 23, 2016 Clearinghouse coding complete . Following Yates announcement, CCAs stock fell $9.65, or 39.45%, to close at $17.57 on August 18, 2016, the complaint alleged. The alternative proposal requests 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 Settling Parties engaged in arms-length negotiations during the mediation session, but were unable to reach an agreement. Donations: 212-614-6448 Are you a current or former employee of Corrections Corporation of America (2016)? Layn R. Phillips (Ret.). Private Prison Giants GEO And CCA Accused of "False and Misleading Amalgamated Bank, as Trustee for the LongView Collective Investment Fund, sought to represent a class of investors who bought and sold CoreCivic stock between February 27, 2012 and August 17, 2016, including at least 783 major institutions and numerous minor institutions and private parties who owned the companys stock during that period. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Filed: May 31, 2017 3:17-cv-01112-JLS-NLS. of Phillips ADR, an experienced mediator. The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated June 24, 2021, which can be found and downloaded by clicking on the Case Documents tab above. Ask to speak in Court about the fairness of the Settlement. Check, Esq., D. Seamus Kaskela, Esq. RADNOR, Pa., Aug. 24, 2016 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Corrections. Other reports continued the theme of high standards that governed the operation of CCAs federal facilities. Securities class action suit brought against Corrections Corporation of Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. In short, the defendants profited from their unfair control over imprisoned people. The lawsuit captioned Grae v. Corrections Corporation of America, et al., Case No. When typing in this field, a list of search results will appear and be automatically updated as you type. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. Defendants deny each and all of Plaintiffs allegations. Therefore, class-action status was granted. Investors who purchased CCA securities during the Class Period may seek to be appointed by the Court as a lead plaintiff representative of the class. Judge Trauger found there was a strong case to be made that CoreCivic got off easy with respect to the OIG report. The class specifically excluded CCA and CoreCivic officers named as defendants. Case No. The banks lawsuit essentially claims that CoreCivic officials made numerous statements about how well the company was fulfilling its contracts with the federal government and how happy their clients were with CoreCivics performance when, in fact, the companys facilities were receiving poor marks on audits and its executives were exchanging emails about how bad the situation was and how the contracts were in danger. Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. [See: PLN, Oct. 2018, p.30; Oct. 2016, p.22]. 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.