GEO Group, Inc. Class Action Lawsuit
- Company Name
- GEO Group, Inc.
- Stock Symbol
- Class Period
- February 27, 2020 to June 16, 2020
- Motion Deadline
- September 5, 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%.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased GEO Group securities during the Class Period to seek appointment as lead plaintiff in the GEO Group class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the GEO Group class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the GEO Group class action lawsuit. An investor’s ability to share in any potential future recovery of the GEO Group class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the GEO Group class action lawsuit or have questions concerning your rights regarding the GEO Group class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the GEO Group class action lawsuit must be filed with the court no later than September 8, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.