RADNOR, Pa., Sept. 06, 2016 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against The GEO Group, Inc. (NYSE:GEO) (“GEO” or the “Company”) on behalf of purchasers of the Company’s securities between March 1, 2012 and August 17, 2016, inclusive (the “Class Period”).
GEO shareholders who purchased their securities during the Class Period may, no later than October 24, 2016, petition the Court to be appointed as a lead plaintiff representative of the class.
Shareholders who wish to discuss this action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys D. Seamus Kaskela or Adrienne O. Bell at (888) 299-7706 or online at: https://www.ktmc.com/new-cases/the-geo-group-inc#join.
GEO provides government-outsourced services, including the management of correctional and detention facilities in the United States and internationally.
The complaint alleges that GEO 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) GEO’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) GEO’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 GEO; and (iv) as a result of the foregoing, GEO’s public statements were materially false and misleading at all relevant times.
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 GEO, after officials concluded that GEO’s facilities are both less safe and less effective at providing correctional services than those run by the federal government.
Following this news, shares of the Company’s stock declined $12.78 per share, or nearly 40 percent, to close on August 18, 2016 at $19.51 per share, on unusually heavy trading volume.
GEO 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. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. 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. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. For additional information, or to learn how to participate in this action, please visit https://www.ktmc.com/new-cases/the-geo-group-inc#join.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. 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. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.