Corrections Corporation of America
Settlement of Nikki Bollinger Grae v. Corrections Corporation of America, et al.
Case No. 3:16-cv-02267
The parties have reached a settlement of this action, pending in the United States District Court for the Middle District of Tennessee. The settlement provides for the payment of $56 million for the benefit of eligible Class Members. Plaintiff Amalgamated Bank, as Trustee for the LongView Collective Investment Fund alleged that Defendants violated §§10(b) and 20(a) of the Securities Exchange Act of 1934 by engaging in a scheme to defraud and making materially false and misleading statements and omissions regarding Corrections Corporation of America’s (n/k/a CoreCivic) (“CCA/CoreCivic” or the “Company”) business and operations. Plaintiff alleged that Defendants falsely stated that the high quality of the Company’s prisons was expected to lead to renewed contracts with its government partners, when in fact, Defendants knew that one of the Company’s largest clients, the Federal Bureau of Prisons, had opted not to renew contracts with the Company, and was unlikely to renew additional contracts in the future, because of the poor quality of CCA/CoreCivic’s services. Plaintiff alleged that Defendants’ fraud caused the Company’s securities to trade at artificially inflated prices, until the circumstances concealed by Defendants’ fraud were revealed, and the Company’s stock price declined precipitously.
The Class consists of all Persons who purchased or otherwise acquired CCA/CoreCivic securities during the Class Period, and were damaged thereby. Excluded from the Class are: (a) CCA/CoreCivic; (b) Damon T. Hininger, David M. Garfinkle, Todd J. Mullenger, and Harley G. Lappin; (c) all other executive officers and directors of CCA/CoreCivic or any of its parents, subsidiaries or other entities owned or controlled by CCA/CoreCivic during the Class Period; (d) all immediate family members of the foregoing, including grandparents, parents, spouses, siblings, children, grandchildren and step relations of similar degree; and (e) all predecessors and successors in interest or assigns of any of the foregoing. Also excluded from the Class is any Person who would otherwise be a Member of the Class but who validly and timely requested exclusion in accordance with the requirements set by the Court.
The settlement was approved by the Court on November 8, 2021.
If you have any questions about the settlement or the litigation, please contact Rick Nelson at 1-800-449-4900.