GEO Group, Inc. Class Action Lawsuit
- Company Name
- GEO Group, Inc.
- Stock Symbol
- Class Period
- February 27, 2020 to June 16, 2020
- Southern District of Florida
The GEO Group, Inc. class action lawsuit charges GEO Group and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of GEO Group securities between February 27, 2020 and June 16, 2020, inclusive (the “Class Period”). The GEO Group class action lawsuit was commenced on July 7, 2020 in the Southern District of Florida and is captioned Hartel v. The GEO Group, Inc., No. 20-cv-81063.
GEO Group is purportedly the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of secure facilities, processing centers, and community re-entry centers in the United States, Australia, South Africa, and the United Kingdom.
The GEO Group class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (i) GEO Group maintained woefully ineffective COVID-19 response procedures; (ii) GEO Group’s inadequate procedures subjected residents of GEO Group’s halfway houses to significant health risks; (iii) accordingly, GEO Group was vulnerable to significant financial and/or reputational harm; and (iv) as a result, GEO Group’s public statements were materially false and misleading at all relevant times.
On June 17, 2020, The Intercept published an article entitled “GEO Group’s Blundering Response to the Pandemic Helped Spread Coronavirus in Halfway Houses.” The article reported details of a significant COVID-19 outbreak at the Grossman Center, a halfway house in Leavenworth, Kansas, operated by GEO Group, which “was for weeks the hardest hit federal halfway house in the country” in terms of confirmed cases of COVID-19. Citing interviews with residents of the Grossman Center, The Intercept characterized GEO Group’s response as “blundering” and reported “that the virus spread not in spite of the facility’s efforts to contain it, but because of it.” According to the article, the Grossman Center continued to keep its residents in overcrowded conditions without enforcing personal protective measures even as COVID-19 diagnoses at the facility increased. On this news, GEO Group’s stock price fell nearly 8%.
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