Governance & Derivative
The GEO Group, Inc. (NYSE: GEO)
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into The GEO Group, Inc. (NYSE: GEO).
The Company has been the subject of several lawsuits arising from alleged substandard conditions, inadequate medical care and overcrowding at some of its prison facilities; however, in numerous instances it downplayed to investors the expense and financial risks posed by the litigation. In July 2019, news reports revealed correspondence sent by the Company to the U.S. Immigration and Customs Enforcement (“ICE”) requesting its help to cover the expense of the litigation, which it was “deeply alarmed at the rapidly increasing costs in defending…without reimbursement from ICE” and which was “likely to cost $15-20 million with an expense of tens of millions in the event of a final negative ruling by the courts,” because the Company “cannot bear the costs of this defense on its own.”
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit charging them with failing to disclose material information during the Class Period in violation of federal securities laws, which remains ongoing.
KSF’s investigation is focusing on whether GEO Group’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of GEO Group shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org), or fill out the form on this page.