The GEO Group Comments on Favorable Ruling by U.S. Court of Appeals for the Ninth Circuit Against California’s AB32 Law
October 07 2021 - 6:55AM
Business Wire
The GEO Group (NYSE: GEO) (“GEO”) commented today on the
favorable ruling by the U.S. Court of Appeals for the Ninth Circuit
(the “Ninth Circuit Court of Appeals”) in relation to lawsuits
filed by GEO and the United States for declaratory and injunctive
relief challenging California’s enacted law, Assembly Bill 32
(“AB32”), which would bar the federal government from engaging
government contractors to provide services at federal immigration
processing centers.
On October 5, 2021, the Ninth Circuit Court of Appeals reversed
a prior U.S. District Court decision dismissing the requests by GEO
and the United States for declaratory and injunctive relief and
ruled that AB32 conflicts with federal law in violation of the
Supremacy Clause of the U.S. Constitution and discriminates against
the federal government in violation of the intergovernmental
immunity doctrine. The case is remanded to the U.S. District Court
for further proceedings, consistent with the Ninth Circuit Court of
Appeals ruling.
Commenting on the ruling, GEO’s Executive Chairman, George C.
Zoley, said, “We are pleased with this ruling and anticipate it
will allow the continuation of our California civil detention
support services contracts for the U.S. Department of Homeland
Security, which are effective through December 19, 2034.”
About The GEO Group The GEO Group (NYSE: GEO) is a fully
integrated equity real estate investment trust specializing in the
design, financing, development, and operation of secure facilities,
processing centers, and community reentry centers in the United
States, Australia, South Africa, and the United Kingdom. GEO is a
leading provider of enhanced in-custody rehabilitation,
post-release support, electronic monitoring, and community-based
programs. GEO’s worldwide operations include the ownership and/or
management of 114 facilities totaling approximately 90,000 beds,
including idle facilities and projects under development, with a
workforce of up to approximately 20,000 professionals.
Safe-Harbor Statement This press release contains
forward-looking statements regarding future events and future
performance of GEO that involve risks and uncertainties that could
materially affect actual results, including statements regarding
the favorable ruling, on October 5, 2021, by the Ninth Circuit
Court of Appeals in relation to lawsuits filed by GEO and the
United States for declaratory and injunctive relief challenging
AB32, which would bar the federal government from engaging
government contractors to provide services at federal immigration
processing centers. Risks and uncertainties that could cause actual
results to vary from current expectations and forward-looking
statements contained in this press release include, but are not
limited to: (1) any future judgments or orders that are adverse to
the ruling by the Ninth Circuit Court of Appeals on AB32; (2) GEO’s
ability to meet its financial guidance for 2021 given the various
risks to which its business is exposed; (3) GEO’s ability to
deleverage and repay, refinance or otherwise address its debt
maturities in an amount or on the timeline it expects, or at all;
(4) changes in federal and state government policy, orders,
directives, legislation and regulations that affect public-private
partnerships with respect to secure correctional and detention
facilities, processing centers, and reentry centers, including the
timing and scope of implementation of the January 2021 Presidential
Executive Order to not renew U.S. Department of Justice contracts
with privately-operated criminal detention facilities; (5) changes
in federal immigration policy; (6) public and political opposition
to the use of public-private partnerships with respect to secure
correctional and detention facilities, processing centers and
reentry centers; (7) the magnitude, severity, and duration of the
current COVID-19 global pandemic, its impact on GEO, GEO's ability
to mitigate the risks associated with COVID-19, and the efficacy
and distribution of COVID-19 vaccines; (8) GEO’s ability to sustain
or improve company-wide occupancy rates at its facilities in light
of the COVID-19 global pandemic and policy and contract
announcements impacting GEO’s federal facilities in the United
States; (9) fluctuations in our operating results, including as a
result of contract terminations, contract renegotiations, changes
in occupancy levels and increases in our operating costs; (10)
general economic and market conditions, including changes to
governmental budgets and its impact on new contract terms, contract
renewals, renegotiations, per diem rates, fixed payment provisions,
and occupancy levels; (11) GEO’s ability to timely open facilities
as planned, profitably manage such facilities and successfully
integrate such facilities into GEO’s operations without substantial
costs; (12) GEO’s ability to win management contracts for which it
has submitted proposals and to retain existing management
contracts; (13) risks associated with GEO’s ability to control
operating costs associated with contract start-ups; (14) GEO’s
ability to successfully pursue growth and continue to create
shareholder value; (15) GEO’s ability to obtain financing or access
the capital markets in the future on acceptable terms or at all;
(16) other factors contained in GEO’s Securities and Exchange
Commission periodic filings, including its Form 10-K, 10-Q and 8-K
reports.
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Pablo E. Paez (866) 301 4436 Executive Vice President, Corporate
Relations
Geo (NYSE:GEO)
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