NEW YORK, Sept. 2, 2016 /PRNewswire/ -- Pomerantz LLP
announces that a class action lawsuit has been filed against
Correction Corporation of America ("CCA" or the "Company")
(NYSE: CXW) and certain of its officers. The class
action, filed in United States District Court, Middle District of
Tennessee, is on behalf of a class
consisting of all persons or entities who purchased or otherwise
acquired CCA securities between February 27,
2012 and August 17, 2016 both
dates 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").
If you are a shareholder who purchased CCA securities during the
Class Period, you have until October 24,
2016 to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, ext. 9980. Those who inquire by e-mail are encouraged to
include their mailing address, telephone number, and number of
shares purchased.
[Click here to join this class action]
CCA, together with its subsidiaries, owns and operates
privatized correctional and detention facilities in the United States. The Company owns, operates,
and manages prisons and other correctional facilities, and provides
inmate residential and prisoner transportation services for
governmental agencies. As of 2015, CCA was the largest
private corrections company in the United
States, and manages more than 65 correction and detention
facilities in 19 states and the District
of Columbia.
The Complaint alleges that throughout the Class Period,
Defendants made materially false and misleading statements
regarding the Company's business, operational and compliance
policies. Specifically, Defendants made false and/or misleading
statements and/or failed to disclose 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.
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.
On this news, CCA's share price fell $9.65, or 39.45%, to close at $17.57 on August 18,
2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los
Angeles, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 80 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP