CoreCivic Announces Agreement In Principle to Settle Shareholder Litigation
April 16 2021 - 12:30PM
CoreCivic, Inc. (NYSE: CXW) (“CoreCivic”)
announced today that it has reached an agreement in principle to
settle a purported securities class action lawsuit filed on August
23, 2016, against CoreCivic and certain of its current and former
officers in the United States District Court for the Middle
District of Tennessee, captioned Grae v. Corrections Corporation of
America et al.. The lawsuit was filed after the company’s stock
price declined following issuance of an August 18, 2016 memorandum
from the Department of Justice instructing the Federal Bureau of
Prisons (“BOP”) to reduce and ultimately end the use of privately
operated prisons.
"We are pleased to resolve this matter and put it
behind us in order to focus on the Company’s business," said Damon
Hininger, CoreCivic's President and Chief Executive Officer. "While
we continue to believe the allegations in this case were without
merit, we also believe that eliminating the risk, cost and
distraction related to the litigation is in the best interest of
CoreCivic and its shareholders.”
The monetary terms of the settlement of the Grae case include a
payment by CoreCivic of $56 million in return for a dismissal of
the Grae case with prejudice and a full release of all claims
against all defendants, including CoreCivic and its current and
former officers. The proposed settlement contains no admission of
liability, wrongdoing, or responsibility by any of the defendants,
including CoreCivic, and is subject to the negotiation and
execution of a definitive settlement agreement among the parties,
and court approval of such definitive settlement agreement. A jury
trial for the case was previously scheduled to begin May 10,
2021.
This press release contains “forward-looking statements” within
the meaning of federal securities laws. Words such as “will,”
“should,” “expect,” “plans” and “intend” and similar expressions
identify forward-looking statements, which include but are not
limited to statements related to CoreCivic’s expectations regarding
the agreement in principle to settle the Grae case. These
forward-looking statements may be affected by risks and
uncertainties in CoreCivic’s business and market conditions. This
information is qualified in its entirety by cautionary statements
and risk factor disclosures contained in CoreCivic’s Securities and
Exchange Commission (“SEC”) filings, including CoreCivic’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2020
filed with the SEC on February 22, 2021. CoreCivic wishes to
caution readers that certain important factors may have affected
and could in the future affect CoreCivic’s actual results and could
cause CoreCivic’s actual results for subsequent periods to differ
materially from those expressed in any forward-looking statement
made by or on behalf of CoreCivic. CoreCivic undertakes no
obligation to update forward-looking statements to reflect events
or circumstances after the date hereof.
About CoreCivic
CoreCivic is a diversified government solutions company with the
scale and experience needed to solve tough government challenges in
flexible, cost-effective ways. CoreCivic provides a broad range of
solutions to government partners that serve the public good through
corrections and detention management, a network of residential
reentry centers to help address America’s recidivism crisis, and
government real estate solutions. CoreCivic is the nation’s largest
owner of partnership correctional, detention and residential
reentry facilities, and believes it is the largest private owner of
real estate used by government agencies in the U.S. CoreCivic has
been a flexible and dependable partner for government for more than
35 years. CoreCivic’s employees are driven by a deep sense of
service, high standards of professionalism and a responsibility to
help government better the public good.
Contact: |
Investors: Cameron Hopewell - Managing Director, Investor Relations
- (615) 263-3024Media: Steve Owen - Vice President, Communications
- (615) 263-3107 |
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